Revolution Medicines (NASDAQ:RVMD – Get Rating) and Opthea (NASDAQ:OPT – Get Rating) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.
Institutional & Insider Ownership
12.8% of Opthea shares are owned by institutional investors. 22.6% of Revolution Medicines shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Get Revolution Medicines alerts:Earnings & Valuation
This table compares Revolution Medicines and Opthea's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Revolution Medicines | $29.39 million | 72.21 | -$187.09 million | ($3.03) | -7.99 |
| Opthea | $70,000.00 | 4,402.00 | -$45.35 million | N/A | N/A |
Analyst Ratings
This is a breakdown of current recommendations for Revolution Medicines and Opthea, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Revolution Medicines | 0 | 1 | 3 | 0 | 2.75 |
| Opthea | 0 | 0 | 1 | 0 | 3.00 |
Revolution Medicines currently has a consensus target price of $29.25, indicating a potential upside of 20.87%. Opthea has a consensus target price of $19.00, indicating a potential upside of 171.43%. Given Opthea's stronger consensus rating and higher possible upside, analysts clearly believe Opthea is more favorable than Revolution Medicines.
Volatility and Risk
Revolution Medicines has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, Opthea has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.
Profitability
This table compares Revolution Medicines and Opthea's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Revolution Medicines | -823.65% | -39.20% | -32.20% |
| Opthea | N/A | N/A | N/A |
Summary
Opthea beats Revolution Medicines on 8 of the 12 factors compared between the two stocks.
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.
About Opthea
(Get Rating)
Opthea Limited, a clinical stage biopharmaceutical company, develops and commercializes therapies primarily for eye disease in Australia. The company's development activities are based on the intellectual property portfolio covering Vascular Endothelial Growth Factors (VEGF) VEGF-C, VEGF-D, and VEGF Receptor-3 for the treatment of diseases associated with blood and lymphatic vessel growth, as well as vascular leakage. Its lead asset is OPT 302, a soluble form of VEGFR 3 in clinical development as a novel therapy for wet neovascular age related macular degeneration and diabetic macular edema DME, as well as a first in class VEGF C/D inhibitors for treatment with VEGF A inhibitors for the treatment of wet neovascular AMD and other retinal diseases. The company was formerly known as Circadian Technologies Limited and changed its name to Opthea Limited in December 2015. Opthea Limited was incorporated in 1984 and is based in South Yarra, Australia.
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