Relay Therapeutics (NASDAQ:RLAY – Get Rating) and Vaxcyte (NASDAQ:PCVX – Get Rating) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.
Institutional and Insider Ownership
82.2% of Vaxcyte shares are owned by institutional investors. 4.4% of Relay Therapeutics shares are owned by insiders. Comparatively, 21.7% of Vaxcyte shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Relay Therapeutics and Vaxcyte’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Relay Therapeutics has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Vaxcyte has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Relay Therapeutics and Vaxcyte, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Relay Therapeutics currently has a consensus target price of $45.00, indicating a potential upside of 173.22%. Vaxcyte has a consensus target price of $52.00, indicating a potential upside of 102.97%. Given Relay Therapeutics’ higher probable upside, research analysts plainly believe Relay Therapeutics is more favorable than Vaxcyte.
Earnings and Valuation
This table compares Relay Therapeutics and Vaxcyte’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Relay Therapeutics||$3.03 million||590.63||-$363.87 million||($3.95)||-4.17|
Vaxcyte has lower revenue, but higher earnings than Relay Therapeutics. Vaxcyte is trading at a lower price-to-earnings ratio than Relay Therapeutics, indicating that it is currently the more affordable of the two stocks.
Vaxcyte beats Relay Therapeutics on 7 of the 12 factors compared between the two stocks.
About Relay Therapeutics (Get Rating)
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 RLY-1971, an oral small molecule inhibitor of protein tyrosine phosphatase Src homology region 2 domain-containing phosphatase-2 that is in Phase 1 trial in patients with advanced solid tumors. 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 RLY-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 Vaxcyte (Get Rating)
Vaxcyte, Inc., a clinical-stage biotechnology vaccine company, develops novel protein vaccines to prevent or treat bacterial infectious diseases. Its lead vaccine candidate is VAX-24, a 24-valent investigational pneumococcal conjugate vaccine that is in Phase 1/2 clinical trials to treat invasive pneumococcal disease and pneumonia. The company also develops VAX-XP to protect against emerging strains and address antibiotic resistance; VAX-A1, a conjugate vaccine candidate designed to treat Group A Strep; and VAX-PG, a novel protein vaccine candidate targeting keystone pathogen responsible for periodontitis. The company was formerly known as SutroVax, Inc. and changed its name to Vaxcyte, Inc. in May 2020. Vaxcyte, Inc. was incorporated in 2013 and is headquartered in San Carlos, California.
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