Relay Therapeutics (RLAY) & Its Competitors Critical Contrast

Relay Therapeutics (NASDAQ:RLAY) is one of 844 publicly-traded companies in the “Biotechnology” industry, but how does it contrast to its rivals? We will compare Relay Therapeutics to related companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations for Relay Therapeutics and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Relay Therapeutics	1	1	10	2	2.93
Relay Therapeutics Competitors	9773	15031	45238	1571	2.54

Relay Therapeutics currently has a consensus target price of $25.92, suggesting a potential upside of 41.24%. As a group, “Biotechnology” companies have a potential upside of 95.54%. Given Relay Therapeutics’ rivals higher possible upside, analysts clearly believe Relay Therapeutics has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

97.0% of Relay Therapeutics shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Biotechnology” companies are owned by institutional investors. 5.0% of Relay Therapeutics shares are owned by company insiders. Comparatively, 13.0% of shares of all “Biotechnology” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Relay Therapeutics has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Relay Therapeutics’ rivals have a beta of 1.12, meaning that their average stock price is 12% more volatile than the S&P 500.

Profitability

This table compares Relay Therapeutics and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Relay Therapeutics	N/A	-42.27%	-38.67%
Relay Therapeutics Competitors	-9,054.31%	-198.21%	-30.53%

Valuation and Earnings

This table compares Relay Therapeutics and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Relay Therapeutics	$15.35 million	-$276.48 million	-11.69
Relay Therapeutics Competitors	$689.46 million	$10.37 million	-10.05

Relay Therapeutics’ rivals have higher revenue and earnings than Relay Therapeutics. Relay Therapeutics is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Relay Therapeutics beats its rivals on 7 of the 13 factors compared.

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.