Humacyte (NASDAQ:HUMA – Get Rating) and Relay Therapeutics (NASDAQ:RLAY – Get Rating) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
Profitability
This table compares Humacyte and Relay Therapeutics' net margins, return on equity and return on assets.
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| Net Margins | Return on Equity | Return on Assets |
| Humacyte | 1,971.30% | -74.59% | -35.49% |
| Relay Therapeutics | -17,136.40% | -21.42% | -18.77% |
Valuation & Earnings
This table compares Humacyte and Relay Therapeutics' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| Humacyte | $1.26 million | 208.70 | -$26.48 million | $0.32 | 7.97 |
| Relay Therapeutics | $3.03 million | 825.48 | -$363.87 million | ($2.66) | -7.78 |
Humacyte has higher earnings, but lower revenue than Relay Therapeutics. Relay Therapeutics is trading at a lower price-to-earnings ratio than Humacyte, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Humacyte has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Relay Therapeutics has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.
Insider & Institutional Ownership
13.1% of Humacyte shares are held by institutional investors. 25.0% of Humacyte shares are held by insiders. Comparatively, 4.4% of Relay Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Humacyte and Relay Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| Humacyte | 1 | 0 | 1 | 0 | 2.00 |
| Relay Therapeutics | 1 | 1 | 5 | 0 | 2.57 |
Humacyte presently has a consensus target price of $5.58, suggesting a potential upside of 118.10%. Relay Therapeutics has a consensus target price of $34.86, suggesting a potential upside of 67.91%. Given Humacyte's higher possible upside, equities analysts clearly believe Humacyte is more favorable than Relay Therapeutics.
Summary
Humacyte beats Relay Therapeutics on 7 of the 13 factors compared between the two stocks.
About Humacyte
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Humacyte, Inc. engages in the development and manufacture of off-the-shelf, implantable, and bioengineered human tissues for the treatment of diseases and conditions across a range of anatomic locations in multiple therapeutic areas. The company using its proprietary and scientific technology platform to engineer and manufacture human acellular vessels (HAVs). Its investigational HAVs are designed to be easily implanted into any patient without inducing a foreign body response or leading to immune rejection. The company is developing a portfolio of HAVs, which would target the vascular repair, reconstruction, and replacement market, including vascular trauma; arteriovenous access for hemodialysis; peripheral arterial disease; and coronary artery bypass grafting, as well as developing its HAVs for pediatric heart surgery and cellular therapy delivery, including pancreatic islet cell transplantation to treat Type 1 diabetes. The company was founded in 2004 and is headquartered in Durham, North Carolina.
About Relay Therapeutics
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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.
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