Critical Review: Burning Rock Biotech (BNR) and The Competition

Burning Rock Biotech (NASDAQ:BNR) is one of 844 public companies in the “Biotechnology” industry, but how does it compare to its competitors? We will compare Burning Rock Biotech to related companies based on the strength of its institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Profitability

This table compares Burning Rock Biotech and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Burning Rock Biotech	-13.60%	-12.98%	-8.59%
Burning Rock Biotech Competitors	-12,323.33%	-195.91%	-30.60%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Burning Rock Biotech and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Burning Rock Biotech	1	0	0	0	1.00
Burning Rock Biotech Competitors	9869	15284	45614	1598	2.54

As a group, “Biotechnology” companies have a potential upside of 124.57%. Given Burning Rock Biotech’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Burning Rock Biotech has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Burning Rock Biotech and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Burning Rock Biotech	$77.16 million	-$7.92 million	-15.32
Burning Rock Biotech Competitors	$700.54 million	$9.44 million	-18.96

Burning Rock Biotech’s competitors have higher revenue and earnings than Burning Rock Biotech. Burning Rock Biotech is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

30.0% of Burning Rock Biotech shares are held by institutional investors. Comparatively, 47.8% of shares of all “Biotechnology” companies are held by institutional investors. 30.3% of Burning Rock Biotech shares are held by company insiders. Comparatively, 13.1% of shares of all “Biotechnology” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Burning Rock Biotech has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, Burning Rock Biotech’s competitors have a beta of -1.84, indicating that their average stock price is 284% less volatile than the S&P 500.

Summary

Burning Rock Biotech competitors beat Burning Rock Biotech on 7 of the 13 factors compared.

Burning Rock Biotech Company Profile

Burning Rock Biotech Limited is a biotechnology company focused on precision oncology. The company develops and commercializes next-generation sequencing (NGS) tests designed to help detect cancer, guide treatment decisions and monitor patients during therapy. Its offerings include tissue- and blood-based genomic testing for cancer patients, as well as tests intended to support therapy selection, treatment monitoring and the identification of biomarkers relevant to targeted medicines and immunotherapies.