Relay Therapeutics (NASDAQ:RLAY – Get Free Report) and Evogene (NASDAQ:EVGN – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.
Volatility & Risk
Relay Therapeutics has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, Evogene has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.
Insider & Institutional Ownership
97.0% of Relay Therapeutics shares are held by institutional investors. Comparatively, 10.4% of Evogene shares are held by institutional investors. 5.0% of Relay Therapeutics shares are held by company insiders. Comparatively, 7.4% of Evogene shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Relay Therapeutics | $15.35 million | 270.82 | -$276.48 million | ($1.57) | -12.08 |
| Evogene | $1.66 million | 2.78 | -$8.48 million | ($0.91) | -0.58 |
Evogene has lower revenue, but higher earnings than Relay Therapeutics. Relay Therapeutics is trading at a lower price-to-earnings ratio than Evogene, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Relay Therapeutics and Evogene’s 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% |
| Evogene | -694.18% | -156.53% | -86.80% |
Analyst Ratings
This is a summary of current ratings and price targets for Relay Therapeutics and Evogene, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Relay Therapeutics | 1 | 1 | 10 | 2 | 2.93 |
| Evogene | 1 | 0 | 0 | 0 | 1.00 |
Relay Therapeutics currently has a consensus target price of $25.92, suggesting a potential upside of 36.62%. Given Relay Therapeutics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Relay Therapeutics is more favorable than Evogene.
Summary
Relay Therapeutics beats Evogene on 11 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 Evogene
Evogene Ltd., together with its subsidiaries, operates as a computational biology company. It focuses on product discovery and development in life-science based industries, including human health and agriculture, through the use of its Computational Predictive Biology (CPB) platform. The company operates through three segments: Agriculture, Human Health, and Industrial Applications. The Agriculture segment develops seed traits, ag-chemical products, and ag-biological products to enhance plant performance. Its products focus on various crops, such as corn, soybean, wheat, rice, and cotton. The Human Health segment discovers and develops human microbiome-based therapeutics for the treatment of immuno-oncology, GI related disorders, and antimicrobial resistance organisms. The Industrial Applications segment develops enhanced castor bean seeds to serve as a feedstock source for other industrial uses. The company also provides medical cannabis products. It operates in the United States, Israel, Brazil, and internationally. The company has strategic collaborations and licensing agreements with agricultural companies, such as BASF SE, Corteva, and Bayer. Evogene Ltd. was founded in 1999 and is headquartered in Rehovot, Israel.
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