Revolution Medicines (NASDAQ:RVMD) versus Achilles Therapeutics (NASDAQ:ACHL) Financial Analysis

Revolution Medicines (NASDAQ:RVMD) and Achilles Therapeutics (NASDAQ:ACHL) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Analyst Ratings

This is a summary of recent recommendations and price targets for Revolution Medicines and Achilles Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolution Medicines	0	1	5	0	2.83
Achilles Therapeutics	0	1	2	0	2.67

Revolution Medicines presently has a consensus price target of $33.67, suggesting a potential downside of 3.95%. Achilles Therapeutics has a consensus price target of $9.50, suggesting a potential upside of 900.00%. Given Achilles Therapeutics’ higher possible upside, analysts clearly believe Achilles Therapeutics is more favorable than Revolution Medicines.

Institutional & Insider Ownership

48.3% of Achilles Therapeutics shares are owned by institutional investors. 8.5% of Revolution Medicines shares are owned by insiders. Comparatively, 5.4% of Achilles Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Revolution Medicines has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Achilles Therapeutics has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Valuation and Earnings

This table compares Revolution Medicines and Achilles Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revolution Medicines	$29.52 million	129.60	-$248.71 million	($3.14)	-11.16
Achilles Therapeutics	N/A	N/A	-$71.18 million	($1.79)	-0.53

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

Profitability

This table compares Revolution Medicines and Achilles Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Revolution Medicines	-1,003.36%	-36.46%	-31.31%
Achilles Therapeutics	N/A	-37.37%	-33.23%

Summary

Revolution Medicines beats Achilles Therapeutics on 7 of the 13 factors compared between the two stocks.

About Revolution Medicines

Revolution Medicines, Inc., a clinical-stage precision oncology company, develops therapies to inhibit frontier targets in RAS-addicted cancers. The company is developing RMC-4630, an inhibitor of SHP2, which is in Phase 1/2 clinical trial for the treatment of solid tumors, such as gynecologic tumors. It also develops RMC-5845, a selective inhibitor of SOS1, a protein that converts RAS (OFF) to RAS (ON) in cells; and RMC-5552, a hyperactivated selective inhibitor of mTORC1 signaling in tumors. In addition, the company is developing RMC-6291, a tri-complex inhibitor of KRASG12C(ON) and KRASG12C(ON); and RMC-6236, a RAS-selective inhibitor of multiple RAS(ON) variants. Further, it develops RAS(ON) Inhibitors targeting KRASG13C(ON) and KRASG12D(ON). The company has a collaboration agreement with Sanofi for the research and development of SHP2 inhibitors, including RMC-4630. Revolution Medicines, Inc. was incorporated in 2014 and is headquartered in Redwood City, California.

About Achilles Therapeutics

Achilles Therapeutics Plc, a clinical stage immuno-oncology biopharmaceutical company, develops precision T cell therapies to treat various solid tumors. The company's lead product candidates include CHIRON, which is in Phase I/IIa clinical trial for use in the treatment of advanced non-small cell lung cancer; and THETIS, a product candidate in Phase I/IIa clinical trial for use in the treatment of metastatic or recurrent melanoma. The company was formerly known as Achilles TX Limited and changed its name to Achilles Therapeutics Plc in February 2021. Achilles Therapeutics Plc was founded in 2016 and is headquartered in London, the United Kingdom.