Relay Therapeutics (NASDAQ:RLAY) versus BeOne Medicines (NASDAQ:ONC) Head to Head Analysis

Relay Therapeutics (NASDAQ:RLAY) and BeOne Medicines (NASDAQ:ONC) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Volatility and Risk

Relay Therapeutics has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500. Comparatively, BeOne Medicines has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Profitability

This table compares Relay Therapeutics and BeOne Medicines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Relay Therapeutics	N/A	-43.17%	-39.22%
BeOne Medicines	5.37%	10.70%	6.03%

Earnings and Valuation

This table compares Relay Therapeutics and BeOne Medicines”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Relay Therapeutics	$15.35 million	112.24	-$276.48 million	($1.62)	-5.95
BeOne Medicines	$4.97 billion	6.46	$286.93 million	$2.52	116.25

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

Insider and Institutional Ownership

97.0% of Relay Therapeutics shares are held by institutional investors. Comparatively, 48.5% of BeOne Medicines shares are held by institutional investors. 4.9% of Relay Therapeutics shares are held by company insiders. Comparatively, 6.6% of BeOne Medicines shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Relay Therapeutics and BeOne Medicines, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Relay Therapeutics	1	0	4	1	2.83
BeOne Medicines	1	1	11	0	2.77

Relay Therapeutics currently has a consensus target price of $15.40, indicating a potential upside of 59.75%. BeOne Medicines has a consensus target price of $401.00, indicating a potential upside of 36.89%. Given Relay Therapeutics’ stronger consensus rating and higher possible upside, research analysts clearly believe Relay Therapeutics is more favorable than BeOne Medicines.

Summary

BeOne Medicines beats Relay Therapeutics on 9 of the 15 factors compared between the two stocks.

About Relay Therapeutics

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 Migoprotafib (GDC-1971), an oral, small molecule, potent and selective inhibitor of the protein tyrosine phosphatase SHP2 that binds and stabilizes Src homology region 2 domain-containing phosphatase-2 (SHP2) as a monotherapy in patients with advanced or metastatic solid tumors. In addition, 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 GDC-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.

About BeOne Medicines

BeOne Medicines Ltd. is a global oncology company domiciled in Switzerland that is discovering and developing innovative treatments that are more affordable and accessible to cancer patients worldwide. The firm portfolio spanning hematology and solid tumors, BeOne is expediting development of its diverse pipeline of novel therapeutics through its internal capabilities and collaborations. The company was founded by Xiao Dong Wang and John V. Oyler on October 28, 2010 and is headquartered in Basel, Switzerland.