Gaxos.ai (NASDAQ:GXAI – Get Free Report) and Castle Biosciences (NASDAQ:CSTL – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.
Analyst Recommendations
This is a summary of current ratings and target prices for Gaxos.ai and Castle Biosciences, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gaxos.ai | 1 | 0 | 0 | 0 | 1.00 |
| Castle Biosciences | 1 | 1 | 7 | 1 | 2.80 |
Castle Biosciences has a consensus price target of $42.00, suggesting a potential upside of 31.13%. Given Castle Biosciences’ stronger consensus rating and higher possible upside, analysts plainly believe Castle Biosciences is more favorable than Gaxos.ai.
Risk & Volatility
Profitability
This table compares Gaxos.ai and Castle Biosciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gaxos.ai | -131.28% | -34.42% | -33.12% |
| Castle Biosciences | -5.43% | -4.15% | -3.45% |
Institutional & Insider Ownership
42.6% of Gaxos.ai shares are owned by institutional investors. Comparatively, 92.6% of Castle Biosciences shares are owned by institutional investors. 3.2% of Gaxos.ai shares are owned by company insiders. Comparatively, 6.1% of Castle Biosciences shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Gaxos.ai and Castle Biosciences”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gaxos.ai | $3.72 million | 1.63 | -$3.90 million | ($0.63) | -1.35 |
| Castle Biosciences | $357.28 million | 2.74 | -$24.16 million | ($0.66) | -48.53 |
Gaxos.ai has higher earnings, but lower revenue than Castle Biosciences. Castle Biosciences is trading at a lower price-to-earnings ratio than Gaxos.ai, indicating that it is currently the more affordable of the two stocks.
Summary
Castle Biosciences beats Gaxos.ai on 12 of the 15 factors compared between the two stocks.
About Gaxos.ai
Gaxos.ai Inc. engages in developing artificial intelligence applications for various sectors. Its portfolio includes applications in mental and physical wellbeing, coaching, and gaming. In addition, it offers Gaxos, a gaming platform develop, design, acquire, and manage conventional games and combine these games with unconventional game mechanisms. The company was formerly known as The NFT Gaming Company, Inc. and changed its name to Gaxos.ai Inc. in January 2024. Gaxos.ai Inc. was incorporated in 2021 and is based in Roseland, New Jersey.
About Castle Biosciences
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.
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