Oyster Point Pharma (NASDAQ:OYST – Get Rating) and Revolution Medicines (NASDAQ:RVMD – Get Rating) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Earnings and Valuation

This table compares Oyster Point Pharma and Revolution Medicines' gross revenue, earnings per share and valuation.

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

Profitability

Analyst Ratings

This is a breakdown of recent ratings for Oyster Point Pharma and Revolution Medicines, as provided by MarketBeat.

Oyster Point Pharma currently has a consensus price target of $20.00, suggesting a potential upside of 232.78%. Revolution Medicines has a consensus price target of $29.25, suggesting a potential upside of 49.85%. Given Oyster Point Pharma's higher possible upside, analysts plainly believe Oyster Point Pharma is more favorable than Revolution Medicines.

Institutional and Insider Ownership

75.8% of Oyster Point Pharma shares are held by institutional investors. Comparatively, 86.7% of Revolution Medicines shares are held by institutional investors. 17.9% of Oyster Point Pharma shares are held by insiders. Comparatively, 18.8% of Revolution Medicines shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Oyster Point Pharma has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Revolution Medicines has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.

Summary

Revolution Medicines beats Oyster Point Pharma on 10 of the 14 factors compared between the two stocks.

About Oyster Point Pharma

(Get Rating)

Oyster Point Pharma, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of pharmaceutical therapies to treat ophthalmic diseases in the United States. The company's product candidate is TYRVAYA, a nicotinic acetylcholine receptor agonist for the treatment of signs and symptoms of dry eye disease. It is also developing TYRVAYA that is in Phase II clinical trial for the treatment of for neurotrophic keratopathy. The company was incorporated in 2015 and is headquartered in Princeton, New Jersey.

About Revolution Medicines

(Get Rating)

Revolution Medicines, Inc., a clinical-stage precision oncology company, focuses on developing 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 and colorectal cancer 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 mutant-selective inhibitor of KRASG12C(ON) and NRASG12C(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.

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