Relay Therapeutics (NASDAQ:RLAY) and Fate Therapeutics (NASDAQ:FATE) are both mid-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.
Analyst Ratings
This is a summary of current ratings and price targets for Relay Therapeutics and Fate Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Relay Therapeutics | 0 | 1 | 5 | 0 | 2.83 |
Fate Therapeutics | 0 | 4 | 9 | 0 | 2.69 |
Relay Therapeutics presently has a consensus target price of $57.40, suggesting a potential upside of 70.68%. Fate Therapeutics has a consensus target price of $108.3125, suggesting a potential upside of 38.88%. Given Relay Therapeutics' stronger consensus rating and higher possible upside, equities research analysts clearly believe Relay Therapeutics is more favorable than Fate Therapeutics.
Valuation and Earnings
This table compares Relay Therapeutics and Fate Therapeutics' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Relay Therapeutics | N/A | N/A | N/A | N/A | N/A |
Fate Therapeutics | $10.68 million | 684.84 | $-98,150,000.00 | ($1.44) | -54.16 |
Relay Therapeutics has higher earnings, but lower revenue than Fate Therapeutics.
Profitability
This table compares Relay Therapeutics and Fate Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Relay Therapeutics | N/A | N/A | N/A |
Fate Therapeutics | -810.13% | -35.51% | -25.40% |
Institutional & Insider Ownership
98.4% of Relay Therapeutics shares are held by institutional investors. Comparatively, 99.7% of Fate Therapeutics shares are held by institutional investors. 21.4% of Fate Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Relay Therapeutics beats Fate Therapeutics on 5 of the 9 factors compared between the two stocks.