Head to Head Survey: Revolution Medicines (NASDAQ:RVMD) and Rigel Pharmaceuticals (NASDAQ:RIGL)

Rigel Pharmaceuticals (NASDAQ:RIGL) and Revolution Medicines (NASDAQ:RVMD) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Rigel Pharmaceuticals and Revolution Medicines, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rigel Pharmaceuticals	1	2	3	0	2.33
Revolution Medicines	1	1	21	1	2.92

Rigel Pharmaceuticals currently has a consensus target price of $66.75, indicating a potential upside of 49.93%. Revolution Medicines has a consensus target price of $263.15, indicating a potential upside of 45.63%. Given Rigel Pharmaceuticals’ higher probable upside, research analysts plainly believe Rigel Pharmaceuticals is more favorable than Revolution Medicines.

Institutional and Insider Ownership

66.2% of Rigel Pharmaceuticals shares are owned by institutional investors. Comparatively, 94.3% of Revolution Medicines shares are owned by institutional investors. 10.5% of Rigel Pharmaceuticals shares are owned by insiders. Comparatively, 7.6% of Revolution Medicines shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Rigel Pharmaceuticals has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Revolution Medicines has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Profitability

This table compares Rigel Pharmaceuticals and Revolution Medicines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rigel Pharmaceuticals	106.59%	14.89%	11.99%
Revolution Medicines	N/A	-84.51%	-51.97%

Valuation & Earnings

This table compares Rigel Pharmaceuticals and Revolution Medicines”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rigel Pharmaceuticals	$288.21 million	2.91	$367.02 million	$15.51	2.87
Revolution Medicines	$11.58 million	3,375.10	-$1.13 billion	($9.11)	-19.84

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

Summary

Rigel Pharmaceuticals beats Revolution Medicines on 8 of the 14 factors compared between the two stocks.

About Rigel Pharmaceuticals

Rigel Pharmaceuticals, Inc. is a biotechnology company that discovers, develops and commercializes medicines for people with serious hematologic disorders and cancers. Founded in 1996 and based in South San Francisco, California, the company has focused on treatments that target biological pathways involved in disease. Rigel’s marketed products include Tavalisse (fostamatinib), an oral treatment for adults with chronic immune thrombocytopenia who have had an insufficient response to prior treatment, and Rezlidhia (olutasidenib), an oral therapy for certain adults with relapsed or refractory acute myeloid leukemia containing an IDH1 mutation.

About Revolution Medicines

Revolution Medicines, Inc. is a biotechnology company focused on developing targeted therapies for patients with RAS-driven cancers. Founded in 2014 and headquartered in Redwood City, California, the company’s research centers on RAS proteins, which can contribute to the growth of many cancers. The company’s pipeline includes drug candidates designed to inhibit mutant RAS proteins, including daraxonrasib (RMC-6236), which targets multiple RAS variants, and candidates directed at specific KRAS mutations.