Revance Therapeutics (NASDAQ:RVNC) and Forte Biosciences (NASDAQ:FBRX) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.
Insider & Institutional Ownership
74.4% of Revance Therapeutics shares are held by institutional investors. Comparatively, 53.0% of Forte Biosciences shares are held by institutional investors. 4.8% of Revance Therapeutics shares are held by company insiders. Comparatively, 10.9% of Forte Biosciences shares are held by company 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.
Risk & Volatility
Revance Therapeutics has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Forte Biosciences has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.
Profitability
This table compares Revance Therapeutics and Forte Biosciences' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Revance Therapeutics | -5,818.87% | -85.72% | -44.85% |
| Forte Biosciences | N/A | -417.87% | -248.28% |
Valuation & Earnings
This table compares Revance Therapeutics and Forte Biosciences' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Revance Therapeutics | $410,000.00 | 4,666.01 | $-159,430,000.00 | ($3.67) | -7.30 |
| Forte Biosciences | $40,000.00 | 11,212.47 | $-63,520,000.00 | ($40.33) | -0.82 |
Forte Biosciences has lower revenue, but higher earnings than Revance Therapeutics. Revance Therapeutics is trading at a lower price-to-earnings ratio than Forte Biosciences, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Revance Therapeutics and Forte Biosciences, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Revance Therapeutics | 0 | 0 | 4 | 0 | 3.00 |
| Forte Biosciences | 0 | 0 | 7 | 0 | 3.00 |
Revance Therapeutics currently has a consensus price target of $37.75, indicating a potential upside of 41.07%. Forte Biosciences has a consensus price target of $82.00, indicating a potential upside of 145.44%. Given Forte Biosciences' higher possible upside, analysts clearly believe Forte Biosciences is more favorable than Revance Therapeutics.
Summary
Forte Biosciences beats Revance Therapeutics on 7 of the 13 factors compared between the two stocks.
