BeOne Medicines (NASDAQ:ONC – Get Free Report) and Relay Therapeutics (NASDAQ:RLAY – Get Free Report) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.
Risk and Volatility
BeOne Medicines has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Relay Therapeutics has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.
Profitability
This table compares BeOne Medicines and Relay Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BeOne Medicines | 5.37% | 11.10% | 6.40% |
| Relay Therapeutics | N/A | -41.59% | -37.73% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BeOne Medicines | 1 | 1 | 11 | 0 | 2.77 |
| Relay Therapeutics | 1 | 0 | 4 | 1 | 2.83 |
BeOne Medicines currently has a consensus price target of $401.00, suggesting a potential upside of 35.00%. Relay Therapeutics has a consensus price target of $15.40, suggesting a potential upside of 56.35%. Given Relay Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Relay Therapeutics is more favorable than BeOne Medicines.
Institutional & Insider Ownership
48.6% of BeOne Medicines shares are held by institutional investors. Comparatively, 97.0% of Relay Therapeutics shares are held by institutional investors. 6.6% of BeOne Medicines shares are held by company insiders. Comparatively, 4.3% of Relay Therapeutics shares are held 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.
Earnings and Valuation
This table compares BeOne Medicines and Relay Therapeutics”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BeOne Medicines | $5.34 billion | 6.10 | $286.93 million | $2.52 | 117.87 |
| Relay Therapeutics | $15.35 million | 114.69 | -$276.48 million | ($1.62) | -6.08 |
BeOne Medicines has higher revenue and earnings than Relay Therapeutics. Relay Therapeutics is trading at a lower price-to-earnings ratio than BeOne Medicines, indicating that it is currently the more affordable of the two stocks.
Summary
BeOne Medicines beats Relay Therapeutics on 9 of the 15 factors compared between the two stocks.
About BeOne Medicines
BeOne Medicines Ltd. is a global oncology company domiciled in Switzerland that is discovering and developing innovative treatments that are more affordable and accessible to cancer patients worldwide. The firm portfolio spanning hematology and solid tumors, BeOne is expediting development of its diverse pipeline of novel therapeutics through its internal capabilities and collaborations. The company was founded by Xiao Dong Wang and John V. Oyler on October 28, 2010 and is headquartered in Basel, Switzerland.
About Relay Therapeutics
Relay Therapeutics, Inc. operates as a clinical-stage precision medicines company. It engages in transforming the drug discovery process with an initial focus on enhancing small molecule therapeutic discovery in targeted oncology and genetic disease indications. The company’s lead product candidates include RLY-4008, an oral small molecule inhibitor of fibroblast growth factor receptor 2 (FGFR2), which is in a first-in-human clinical trial for patients with advanced or metastatic FGFR2-altered solid tumors; RLY-2608, a lead mutant-PI3Ka inhibitor program that targets phosphoinostide 3 kinase alpha; and Migoprotafib (GDC-1971), an oral, small molecule, potent and selective inhibitor of the protein tyrosine phosphatase SHP2 that binds and stabilizes Src homology region 2 domain-containing phosphatase-2 (SHP2) as a monotherapy in patients with advanced or metastatic solid tumors. In addition, it has collaboration and license agreements with D. E. Shaw Research, LLC to research certain biological targets through the use of D. E. Shaw Research computational modeling capabilities focused on analysis of protein motion to develop and commercialize compounds and products directed to such targets; and Genentech, Inc. for the development and commercialization of GDC-1971. The company was formerly known as Allostery, Inc. and changed its name to Relay Therapeutics, Inc. in December 2015. Relay Therapeutics, Inc. was incorporated in 2015 and is headquartered in Cambridge, Massachusetts.
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