Revolution Medicines (NASDAQ:RVMD – Get Free Report) and Evogene (NASDAQ:EVGN – Get Free Report) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.
Profitability
This table compares Revolution Medicines and Evogene’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Revolution Medicines | N/A | -88.20% | -57.85% |
| Evogene | -694.18% | -156.53% | -86.80% |
Insider & Institutional Ownership
94.3% of Revolution Medicines shares are owned by institutional investors. Comparatively, 10.4% of Evogene shares are owned by institutional investors. 7.6% of Revolution Medicines shares are owned by insiders. Comparatively, 7.4% of Evogene shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Revolution Medicines | 1 | 1 | 20 | 2 | 2.96 |
| Evogene | 1 | 0 | 0 | 0 | 1.00 |
Revolution Medicines presently has a consensus target price of $234.38, indicating a potential upside of 16.51%. Given Revolution Medicines’ stronger consensus rating and higher possible upside, equities analysts plainly believe Revolution Medicines is more favorable than Evogene.
Valuation & Earnings
This table compares Revolution Medicines and Evogene”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Revolution Medicines | $11.58 million | 3,723.61 | -$1.13 billion | ($8.82) | -22.81 |
| Evogene | $1.66 million | 2.14 | -$8.48 million | ($0.91) | -0.45 |
Evogene has lower revenue, but higher earnings than Revolution Medicines. Revolution Medicines is trading at a lower price-to-earnings ratio than Evogene, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Revolution Medicines has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Evogene has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500.
Summary
Revolution Medicines beats Evogene on 11 of the 15 factors compared between the two stocks.
About Revolution Medicines
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.
About Evogene
Evogene Ltd., together with its subsidiaries, operates as a computational biology company. It focuses on product discovery and development in life-science based industries, including human health and agriculture, through the use of its Computational Predictive Biology (CPB) platform. The company operates through three segments: Agriculture, Human Health, and Industrial Applications. The Agriculture segment develops seed traits, ag-chemical products, and ag-biological products to enhance plant performance. Its products focus on various crops, such as corn, soybean, wheat, rice, and cotton. The Human Health segment discovers and develops human microbiome-based therapeutics for the treatment of immuno-oncology, GI related disorders, and antimicrobial resistance organisms. The Industrial Applications segment develops enhanced castor bean seeds to serve as a feedstock source for other industrial uses. The company also provides medical cannabis products. It operates in the United States, Israel, Brazil, and internationally. The company has strategic collaborations and licensing agreements with agricultural companies, such as BASF SE, Corteva, and Bayer. Evogene Ltd. was founded in 1999 and is headquartered in Rehovot, Israel.
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