Contrasting Krystal Biotech (NASDAQ:KRYS) & Revolution Medicines (NASDAQ:RVMD)

Krystal Biotech (NASDAQ:KRYS) and Revolution Medicines (NASDAQ:RVMD) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Earnings and Valuation

This table compares Krystal Biotech and Revolution Medicines”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Krystal Biotech	$389.13 million	23.28	$204.83 million	$7.37	41.48
Revolution Medicines	$11.58 million	3,293.85	-$1.13 billion	($9.11)	-19.36

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

Volatility and Risk

Krystal Biotech has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Revolution Medicines has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.

Profitability

This table compares Krystal Biotech and Revolution Medicines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Krystal Biotech	47.91%	17.02%	15.48%
Revolution Medicines	N/A	-84.51%	-51.97%

Analyst Ratings

This is a summary of recent ratings and target prices for Krystal Biotech and Revolution Medicines, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Krystal Biotech	1	1	10	2	2.93
Revolution Medicines	1	1	21	1	2.92

Krystal Biotech currently has a consensus target price of $375.00, indicating a potential upside of 22.68%. Revolution Medicines has a consensus target price of $263.15, indicating a potential upside of 49.22%. Given Revolution Medicines’ higher possible upside, analysts clearly believe Revolution Medicines is more favorable than Krystal Biotech.

Institutional & Insider Ownership

86.3% of Krystal Biotech shares are held by institutional investors. Comparatively, 94.3% of Revolution Medicines shares are held by institutional investors. 13.1% of Krystal Biotech shares are held by insiders. Comparatively, 7.6% of Revolution Medicines shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Krystal Biotech beats Revolution Medicines on 10 of the 15 factors compared between the two stocks.

About Krystal Biotech

Krystal Biotech, Inc. is a biotechnology company that develops genetic medicines for people with serious diseases. Founded in 2016 and headquartered in Pittsburgh, Pennsylvania, the company focuses on treatments that deliver functional genes to patients’ cells. Its commercial product, Vyjuvek (beremagene geperpavec-svdt), is a topical gene therapy for wounds associated with dystrophic epidermolysis bullosa, a rare inherited skin disorder. The treatment is designed to help cells produce collagen VII, a protein that supports the skin’s structure.

About Revolution Medicines

Revolution Medicines, Inc. is a biotechnology company focused on developing targeted therapies for patients with RAS-driven cancers. Founded in 2014 and headquartered in Redwood City, California, the company’s research centers on RAS proteins, which can contribute to the growth of many cancers. The company’s pipeline includes drug candidates designed to inhibit mutant RAS proteins, including daraxonrasib (RMC-6236), which targets multiple RAS variants, and candidates directed at specific KRAS mutations.