Analyzing CRISPR Therapeutics (NASDAQ:CRSP) and Relay Therapeutics (NASDAQ:RLAY)

CRISPR Therapeutics (NASDAQ:CRSP) and Relay Therapeutics (NASDAQ:RLAY) are both mid-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Risk and Volatility

CRISPR Therapeutics has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500. Comparatively, Relay Therapeutics has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CRISPR Therapeutics	$23.32 million	187.78	-$581.60 million	($4.74)	-9.53
Relay Therapeutics	$15.35 million	287.32	-$276.48 million	($1.51)	-13.22

Relay Therapeutics has lower revenue, but higher earnings than CRISPR Therapeutics. Relay Therapeutics is trading at a lower price-to-earnings ratio than CRISPR Therapeutics, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

69.2% of CRISPR Therapeutics shares are owned by institutional investors. Comparatively, 97.0% of Relay Therapeutics shares are owned by institutional investors. 5.2% of CRISPR Therapeutics shares are owned by insiders. Comparatively, 5.0% of Relay Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CRISPR Therapeutics	-1,812.07%	-25.59%	-17.89%
Relay Therapeutics	N/A	-40.25%	-36.82%

Analyst Recommendations

This is a summary of recent ratings and price targets for CRISPR Therapeutics and Relay Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CRISPR Therapeutics	1	6	8	2	2.65
Relay Therapeutics	1	1	11	1	2.86

CRISPR Therapeutics currently has a consensus price target of $72.93, suggesting a potential upside of 61.53%. Relay Therapeutics has a consensus price target of $27.00, suggesting a potential upside of 35.27%. Given CRISPR Therapeutics’ higher probable upside, research analysts clearly believe CRISPR Therapeutics is more favorable than Relay Therapeutics.

Summary

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

About CRISPR Therapeutics

CRISPR Therapeutics AG is a biotechnology company focused on developing gene-based medicines using CRISPR/Cas9, a gene-editing technology that can make targeted changes to DNA. Founded in 2013, the company is headquartered in Zug, Switzerland, and maintains U.S. operations in Cambridge, Massachusetts. Its lead product, Casgevy (exa-cel), was developed with Vertex Pharmaceuticals for people with sickle cell disease and transfusion-dependent beta thalassemia. It was the first therapy based on CRISPR gene editing to receive regulatory approval.

About Relay Therapeutics

Relay Therapeutics, Inc. is a clinical-stage biotechnology company focused on discovering and developing medicines for patients with serious diseases, with an emphasis on cancer. The company uses its computational drug discovery platform to study how proteins move and interact, aiming to identify drug targets and design therapies against them. Relay’s research combines experimental biology, structural biology and computational methods. Its drug development programs have included candidates targeting cancer-related pathways, such as FGFR2 and PI3Kα.