Head-To-Head Contrast: Relay Therapeutics (NASDAQ:RLAY) and BeOne Medicines (NASDAQ:ONC)

Relay Therapeutics (NASDAQ:RLAY) and BeOne Medicines (NASDAQ:ONC) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Risk & Volatility

Relay Therapeutics has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, BeOne Medicines has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Profitability

This table compares Relay Therapeutics and BeOne Medicines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Relay Therapeutics	N/A	-42.94%	-38.78%
BeOne Medicines	1.38%	5.52%	3.17%

Earnings & Valuation

This table compares Relay Therapeutics and BeOne Medicines”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Relay Therapeutics	$10.01 million	158.60	-$337.71 million	($1.75)	-5.23
BeOne Medicines	$3.81 billion	9.28	-$644.79 million	$0.51	632.10

Relay Therapeutics has higher earnings, but lower revenue than BeOne Medicines. 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Relay Therapeutics and BeOne Medicines, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Relay Therapeutics	1	0	4	1	2.83
BeOne Medicines	1	1	13	0	2.80

Relay Therapeutics presently has a consensus price target of $15.00, indicating a potential upside of 63.76%. BeOne Medicines has a consensus price target of $382.77, indicating a potential upside of 18.74%. Given Relay Therapeutics’ stronger consensus rating and higher probable upside, equities analysts plainly believe Relay Therapeutics is more favorable than BeOne Medicines.

Insider & Institutional Ownership

97.0% of Relay Therapeutics shares are owned by institutional investors. Comparatively, 48.6% of BeOne Medicines shares are owned by institutional investors. 4.9% of Relay Therapeutics shares are owned by company insiders. Comparatively, 6.6% of BeOne Medicines shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

BeOne Medicines beats Relay Therapeutics on 8 of the 15 factors compared between the two stocks.

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.

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.