Reviewing Pliant Therapeutics (NASDAQ:PLRX) & Revolution Medicines (NASDAQ:RVMD)

Pliant Therapeutics (NASDAQ:PLRXGet Free Report) and Revolution Medicines (NASDAQ:RVMDGet Free Report) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Pliant Therapeutics N/A -68.71% -51.47%
Revolution Medicines N/A -63.10% -48.13%

Analyst Recommendations

This is a breakdown of recent ratings for Pliant Therapeutics and Revolution Medicines, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pliant Therapeutics 2 2 1 0 1.80
Revolution Medicines 1 0 15 5 3.14

Pliant Therapeutics currently has a consensus target price of $3.00, indicating a potential upside of 130.77%. Revolution Medicines has a consensus target price of $78.94, indicating a potential downside of 42.08%. Given Pliant Therapeutics’ higher probable upside, analysts plainly believe Pliant Therapeutics is more favorable than Revolution Medicines.

Institutional and Insider Ownership

97.3% of Pliant Therapeutics shares are owned by institutional investors. Comparatively, 94.3% of Revolution Medicines shares are owned by institutional investors. 6.4% of Pliant Therapeutics shares are owned by insiders. Comparatively, 8.2% of Revolution Medicines shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Pliant Therapeutics has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Revolution Medicines has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Earnings and Valuation

This table compares Pliant Therapeutics and Revolution Medicines”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pliant Therapeutics $1.58 million 50.95 -$149.34 million ($2.44) -0.53
Revolution Medicines $11.58 million 2,332.52 -$1.13 billion ($5.91) -23.06

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

Summary

Revolution Medicines beats Pliant Therapeutics on 8 of the 14 factors compared between the two stocks.

About Pliant Therapeutics

(Get Free Report)

Pliant Therapeutics, Inc., a clinical stage biopharmaceutical company, discovers, develops, and commercializes novel therapies for the treatment of fibrosis and related diseases in the United States. The company's lead candidate is bexotegrast, an oral, small-molecule, dual selective inhibitor of avß6 and avß1 integrins, which is in phase 2b trials for idiopathic pulmonary fibrosis and in phase 2a trial for primary sclerosing cholangitis. It also develops PLN-1474, an oral, small-molecule selective inhibitor of avß1 for the treatment of liver fibrosis associated with nonalcoholic steatohepatitis; PLN-101095, a dual inhibitor of integrins avß8 and avß1 for the treatment of solid tumors; and PLN-101325 for treatment of muscular dystrophies. Pliant Therapeutics, Inc. was incorporated in 2015 and is based in South San Francisco, California.

About Revolution Medicines

(Get Free Report)

Revolution Medicines, Inc., a clinical-stage precision oncology company, develops novel targeted therapies for RAS-addicted cancers. The company’s research and development pipeline comprises RAS(ON) inhibitors designed to be used as monotherapy in combination with other RAS(ON) inhibitors and/or in combination with RAS companion inhibitors or other therapeutic agents, and RAS companion inhibitors for combination treatment strategies. Its RAS(ON) inhibitors include RMC-6236 (multi), RMC-6291 (G12C), and RMC-9805 (G12D), which are in phase 1 clinical trial; and development candidates comprise RMC-5127 (G12V), RMC-0708 (Q61H), and RMC-8839 (G13C), as well as programs focused on G12R and other targets. The company’s RAS companion inhibitors include RMC-4630 that is in phase 2 clinical trial; and RMC-5552, which is in phase 1 clinical trial. Revolution Medicines, Inc. was incorporated in 2014 and is headquartered in Redwood City, California.

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