Financial Analysis: Castle Biosciences (NASDAQ:CSTL) versus AirSculpt Technologies (NASDAQ:AIRS)

Castle Biosciences (NASDAQ:CSTL – Get Free Report) and AirSculpt Technologies (NASDAQ:AIRS – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Castle Biosciences and AirSculpt Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Castle Biosciences 1 1 7 1 2.80
AirSculpt Technologies 1 1 0 0 1.50

Castle Biosciences presently has a consensus target price of $42.00, indicating a potential upside of 24.59%. AirSculpt Technologies has a consensus target price of $4.50, indicating a potential upside of 171.90%. Given AirSculpt Technologies’ higher possible upside, analysts clearly believe AirSculpt Technologies is more favorable than Castle Biosciences.

Earnings & Valuation

This table compares Castle Biosciences and AirSculpt Technologies”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Castle Biosciences $344.23 million 2.99 -$24.16 million ($0.66) -51.08
AirSculpt Technologies $151.82 million 0.79 -$11.67 million ($0.18) -9.19

AirSculpt Technologies has lower revenue, but higher earnings than Castle Biosciences. Castle Biosciences is trading at a lower price-to-earnings ratio than AirSculpt Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Castle Biosciences has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, AirSculpt Technologies has a beta of 2.29, indicating that its stock price is 129% more volatile than the S&P 500.

Profitability

This table compares Castle Biosciences and AirSculpt Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Castle Biosciences -5.43% -4.15% -3.45%
AirSculpt Technologies -7.79% -5.83% -2.88%

Insider and Institutional Ownership

92.6% of Castle Biosciences shares are owned by institutional investors. Comparatively, 91.5% of AirSculpt Technologies shares are owned by institutional investors. 6.1% of Castle Biosciences shares are owned by company insiders. Comparatively, 44.6% of AirSculpt Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Castle Biosciences beats AirSculpt Technologies on 8 of the 15 factors compared between the two stocks.

About Castle Biosciences

(Get Free Report)

Castle Biosciences, Inc., a molecular diagnostics company, provides testing solutions for the diagnosis and treatment of dermatologic cancers, Barrett's esophagus, uveal melanoma, and mental health conditions. It offers DecisionDx-Melanoma, a risk stratification gene expression profile (GEP) test to identify the risk of metastasis for patients diagnosed with invasive cutaneous melanoma; DecisionDx-SCC, a proprietary risk stratification GEP test for patients with cutaneous squamous cell carcinoma; MyPath Melanoma, a test used for patients with difficult-to-diagnose melanocytic lesions; and TissueCypher, a spatial omics test to predict future development of high-grade dysplasia and/or esophageal cancer in patients with non-dysplastic, indefinite dysplasia, or low-grade dysplasia Barrett's esophagus. In addition, the company provides DecisionDx-UM test, a proprietary risk stratification GEP test that predicts the risk of metastasis for patients with uveal melanoma; and IDgenetix, a pharmacogenomic test that helps guide drug treatment for major depressive disorder, schizophrenia, bipolar disorder, anxiety disorders, social phobia, obsessive-compulsive personality disorder, post-traumatic stress disorder, and attention deficit hyperactivity disorder. It offers its products to skin cancer, gastroenterology, and mental health markets. The company was incorporated in 2007 and is headquartered in Friendswood, Texas.

About AirSculpt Technologies

(Get Free Report)

AirSculpt Technologies, Inc., together with its subsidiaries, focuses on operating as a holding company for EBS Intermediate Parent LLC that provides body contouring procedure services in the United States. The company offers AirSculpt, a next-generation body contouring procedure that removes unwanted fat and tightens skin in a minimally invasive procedure. It also provides AirSculpt+, a procedure that permanently removes fat and tightens the skin with unparalleled precision and finesse; and AirSculpt Smooth, an advanced cellulite removal tool. In addition, it provides fat removal procedures across treatment areas, such as the stomach, back, and buttocks; and fat transfer procedures that use the patient’s own fat cells to enhance the breasts, buttocks, hips, or other areas. The company’s body contouring procedures also include the Power BBL, a Brazilian butt lift procedure; the Up a Cup, a breast enhancement procedure; and the Hip Flip, an hourglass contouring procedure. It operates various centers. The company was founded in 2012 and is headquartered in Miami Beach, Florida.

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