Critical Analysis: Autolus Therapeutics (NASDAQ:AUTL) and Revolution Medicines (NASDAQ:RVMD)

Autolus Therapeutics (NASDAQ:AUTLGet Rating) and Revolution Medicines (NASDAQ:RVMDGet Rating) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Autolus Therapeutics and Revolution Medicines, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autolus Therapeutics 0 0 4 0 3.00
Revolution Medicines 0 1 4 0 2.80

Autolus Therapeutics presently has a consensus price target of $13.67, suggesting a potential upside of 476.65%. Revolution Medicines has a consensus price target of $33.00, suggesting a potential upside of 110.59%. Given Autolus Therapeutics’ stronger consensus rating and higher possible upside, research analysts clearly believe Autolus Therapeutics is more favorable than Revolution Medicines.

Profitability

This table compares Autolus Therapeutics and Revolution Medicines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Autolus Therapeutics -6,551.06% -52.00% -42.38%
Revolution Medicines -773.42% -32.33% -27.71%

Insider and Institutional Ownership

61.5% of Autolus Therapeutics shares are owned by institutional investors. 22.6% of Revolution Medicines shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Autolus Therapeutics and Revolution Medicines’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Autolus Therapeutics $2.33 million 92.47 -$142.10 million ($1.86) -1.27
Revolution Medicines $29.39 million 39.59 -$187.09 million ($2.81) -5.58

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

Volatility & Risk

Autolus Therapeutics has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, Revolution Medicines has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500.

Summary

Autolus Therapeutics beats Revolution Medicines on 7 of the 13 factors compared between the two stocks.

Autolus Therapeutics Company Profile (Get Rating)

Autolus Therapeutics plc, a clinical-stage biopharmaceutical company, develops T cell therapies for the treatment of cancer. The company's clinical-stage programs include obecabtagene autoleucel (AUTO1), a CD19-targeting programmed T cell investigational therapy that is in Phase 1b/2 clinical trial for the treatment of adult ALL; AUTO1/22, which is in a Phase 1 clinical trial in pediatric patients with relapsed or refractory ALL; AUTO4, a programmed T cell investigational therapy for the treatment of peripheral T-cell lymphoma targeting TRBC1; AUTO6NG, a programmed T cell investigational therapy, which is in preclinical trail targeting GD2 in development for the treatment of neuroblastoma; and AUTO8, a product candidate that is in a Phase I clinical trial for multiple myeloma. It also focuses on developing AUTO5, a hematological product candidate, which is in preclinical development. The company was incorporated in 2014 and is headquartered in London, the United Kingdom.

Revolution Medicines Company Profile (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.

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