Head to Head Review: Revance Therapeutics (NASDAQ:RVNC) versus CymaBay Therapeutics (NASDAQ:CBAY)

Revance Therapeutics (NASDAQ:RVNC) and CymaBay Therapeutics (NASDAQ:CBAY) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Earnings & Valuation

This table compares Revance Therapeutics and CymaBay Therapeutics’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revance Therapeutics	$234.04 million	1.68	-$323.99 million	($3.79)	-1.00
CymaBay Therapeutics	$31.07 million	119.92	-$105.37 million	($0.97)	-33.48

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

Profitability

This table compares Revance Therapeutics and CymaBay Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Revance Therapeutics	-138.43%	N/A	-45.78%
CymaBay Therapeutics	N/A	-50.72%	-31.04%

Risk and Volatility

Revance Therapeutics has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, CymaBay Therapeutics has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.

Insider & Institutional Ownership

97.7% of Revance Therapeutics shares are owned by institutional investors. Comparatively, 95.0% of CymaBay Therapeutics shares are owned by institutional investors. 5.1% of Revance Therapeutics shares are owned by company insiders. Comparatively, 7.0% of CymaBay Therapeutics shares are owned 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Revance Therapeutics and CymaBay Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revance Therapeutics	0	4	4	0	2.50
CymaBay Therapeutics	0	11	1	0	2.08

Revance Therapeutics presently has a consensus target price of $13.75, suggesting a potential upside of 263.76%. CymaBay Therapeutics has a consensus target price of $28.65, suggesting a potential downside of 11.79%. Given Revance Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Revance Therapeutics is more favorable than CymaBay Therapeutics.

Summary

Revance Therapeutics beats CymaBay Therapeutics on 8 of the 14 factors compared between the two stocks.

About Revance Therapeutics

Revance Therapeutics, Inc., a biotechnology company, engages in the development, manufacture, and commercialization of neuromodulators for various aesthetic and therapeutic indications in the United States and internationally. The company's lead drug candidate is DAXXIFY (DaxibotulinumtoxinA-lanm) for injection for the treatment of glabellar lines and cervical dystonia; has completed phase II clinical trials to treat upper facial lines, moderate or severe dynamic forehead lines, and moderate or severe lateral canthal lines; and has completed Phase II clinical trials for the treatment of adult upper limb spasticity and plantar fasciitis. It is also developing OnabotulinumtoxinA, a biosimilar to BOTOX that is in preclinical stage. The company also offers Resilient Hyaluronic Acid (RHA) dermal filler for the correction of moderate to severe dynamic facial wrinkles; and RHA Redensity, a dermal filler for the treatment of moderate to severe dynamic perioral rhytids. It has a collaboration and license agreement with Viatris Inc. to develop, manufacture, and commercialize onabotulinumtoxinA. The company was formerly known as Essentia Biosystems, Inc. and changed its name to Revance Therapeutics, Inc. in April 2005. Revance Therapeutics, Inc. was incorporated in 1999 and is headquartered in Nashville, Tennessee.

About CymaBay Therapeutics

CymaBay Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing and providing therapies to treat liver and other chronic diseases. Its lead product candidate is seladelpar (MBX-8025), a selective agonist of peroxisome proliferator activated receptor delta for the treatments of primary biliary cholangitis (PBC). The company also develops MBX-2982, a G protein-coupled receptor 119 (GPR119) agonist, in subjects with type 1 diabetes. It has a license agreement with ABW Cyclops SPV LP to support development of seladelpar for the treatment of PBC. The company was formerly known as Metabolex, Inc. CymaBay Therapeutics, Inc. was incorporated in 1988 and is headquartered in Fremont, California.