Comparing Relay Therapeutics (NASDAQ:RLAY) & Oramed Pharmaceuticals (NASDAQ:ORMP)

Relay Therapeutics (NASDAQ:RLAY) and Oramed Pharmaceuticals (NASDAQ:ORMP) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Relay Therapeutics and Oramed Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Relay Therapeutics	1	1	10	2	2.93
Oramed Pharmaceuticals	0	0	1	0	3.00

Relay Therapeutics currently has a consensus target price of $25.92, suggesting a potential upside of 39.34%. Given Relay Therapeutics’ higher possible upside, research analysts plainly believe Relay Therapeutics is more favorable than Oramed Pharmaceuticals.

Institutional and Insider Ownership

97.0% of Relay Therapeutics shares are held by institutional investors. Comparatively, 12.7% of Oramed Pharmaceuticals shares are held by institutional investors. 5.0% of Relay Therapeutics shares are held by insiders. Comparatively, 20.8% of Oramed Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Relay Therapeutics and Oramed Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Relay Therapeutics	N/A	-40.25%	-36.82%
Oramed Pharmaceuticals	N/A	-5.17%	-4.54%

Valuation & Earnings

This table compares Relay Therapeutics and Oramed Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Relay Therapeutics	$15.35 million	265.54	-$276.48 million	($1.51)	-12.32
Oramed Pharmaceuticals	$2.00 million	80.29	$64.05 million	$4.12	0.94

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

Volatility & Risk

Relay Therapeutics has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, Oramed Pharmaceuticals has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

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 Oramed Pharmaceuticals

Oramed Pharmaceuticals Inc. engages in the research and development of pharmaceutical solutions for the treatment of diabetes and for the use of orally ingestible capsules for delivery of polypeptides. The company's product portfolio includes ORMD-0801, an oral insulin capsule, which is in phase III clinical trial for the treatment of individuals with diabetes, as well as in phase II clinical trial for the treatment of non-alcoholic steatohepatitis; and ORA-D-013-1 and ORA-D-013-2, which have completed phase II clinical trial for the treatment of type 2 diabetes. It has license agreements with Oravax Medical Inc. to commercialize oral vaccines for COVID-19 and other novel coronaviruses. Oramed Pharmaceuticals Inc. was incorporated in 2002 and is headquartered in New York.