Revolution Medicines (NASDAQ:RVMD) & Amgen (NASDAQ:AMGN) Financial Comparison

Revolution Medicines (NASDAQ:RVMD) and Amgen (NASDAQ:AMGN) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Profitability

This table compares Revolution Medicines and Amgen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Revolution Medicines	N/A	-36.41%	-32.13%
Amgen	12.74%	156.21%	10.82%

Institutional & Insider Ownership

94.3% of Revolution Medicines shares are held by institutional investors. Comparatively, 76.5% of Amgen shares are held by institutional investors. 8.0% of Revolution Medicines shares are held by company insiders. Comparatively, 0.7% of Amgen shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Revolution Medicines has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Amgen has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Earnings and Valuation

This table compares Revolution Medicines and Amgen’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revolution Medicines	$4.57 million	1,659.25	-$436.37 million	($3.75)	-12.25
Amgen	$28.19 billion	6.33	$6.72 billion	$7.00	47.50

Amgen has higher revenue and earnings than Revolution Medicines. Revolution Medicines is trading at a lower price-to-earnings ratio than Amgen, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Revolution Medicines and Amgen, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolution Medicines	0	0	11	1	3.08
Amgen	0	10	11	0	2.52

Revolution Medicines currently has a consensus target price of $50.67, indicating a potential upside of 10.34%. Amgen has a consensus target price of $312.63, indicating a potential downside of 5.98%. Given Revolution Medicines’ stronger consensus rating and higher possible upside, equities analysts clearly believe Revolution Medicines is more favorable than Amgen.

About Revolution Medicines

Revolution Medicines, Inc., a clinical-stage precision oncology company, develops novel targeted therapies for RAS-addicted cancers. The company's research and development pipeline comprises RAS(ON) inhibitors designed to be used as monotherapy in combination with other RAS(ON) inhibitors and/or in combination with RAS companion inhibitors or other therapeutic agents, and RAS companion inhibitors for combination treatment strategies. Its RAS(ON) inhibitors include RMC-6236 (multi), RMC-6291 (G12C), and RMC-9805 (G12D), which are in phase 1 clinical trial; and development candidates comprise RMC-5127 (G12V), RMC-0708 (Q61H), and RMC-8839 (G13C), as well as programs focused on G12R and other targets. The company's RAS companion inhibitors include RMC-4630 that is in phase 2 clinical trial; and RMC-5552, which is in phase 1 clinical trial. Revolution Medicines, Inc. was incorporated in 2014 and is headquartered in Redwood City, California.

About Amgen

Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. The company's principal products include Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis; Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behçet's disease; Prolia to treat postmenopausal women with osteoporosis; XGEVA for skeletal-related events prevention; Repatha, which reduces the risks of myocardial infarction, stroke, and coronary revascularization; Nplate for the treatment of patients with immune thrombocytopenia; KYPROLIS to treat patients with relapsed or refractory multiple myeloma; Aranesp to treat a lower-than-normal number of red blood cells and anemia; EVENITY for the treatment of osteoporosis in postmenopausal for men and women; Vectibix to treat patients with wild-type RAS metastatic colorectal cancer; BLINCYTO for the treatment of patients with acute lymphoblastic leukemia; TEPEZZA to treat thyroid eye disease; and KRYSTEXXA for the treatment of chronic refractory gout. It also markets other products, including Neulasta, MVASI, AMJEVITA/AMGEVITA, TEZSPIRE, Parsabiv, Aimovig, LUMAKRAS/LUMYKRAS, EPOGEN, KANJINTI, TAVNEOS, RAVICTI, UPLIZNA and PROCYSBI. The company serves healthcare providers, including physicians or their clinics, dialysis centers, hospitals, and pharmacies. It distributes its products through pharmaceutical wholesale distributors, as well as direct-to-consumer channels. The company has collaboration agreements with AstraZeneca plc for the development and commercialization of TEZSPIRE; Novartis Pharma AG to develop and commercialize Aimovig; UCB for the development and commercialization of EVENITY; Kyowa Kirin Co., Ltd. for rocatinlimab development and commercialization; and BeiGene, Ltd. for oncology products expansion and development. Amgen Inc. was incorporated in 1980 and is headquartered in Thousand Oaks, California.