Financial Analysis: Relay Therapeutics (NASDAQ:RLAY) vs. LadRx (OTCMKTS:CYTR)

Relay Therapeutics (NASDAQ:RLAYGet Rating) and LadRx (OTCMKTS:CYTRGet Rating) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.

Risk & Volatility

Relay Therapeutics has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, LadRx has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500.

Profitability

This table compares Relay Therapeutics and LadRx’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Relay Therapeutics -17,136.40% -21.42% -18.77%
LadRx N/A -67.61% -45.39%

Valuation and Earnings

This table compares Relay Therapeutics and LadRx’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Relay Therapeutics $3.03 million 821.13 -$363.87 million ($2.66) -7.74
LadRx N/A N/A -$6.70 million ($0.15) -0.61

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

Analyst Ratings

This is a summary of recent ratings and price targets for Relay Therapeutics and LadRx, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Relay Therapeutics 1 1 5 0 2.57
LadRx 0 0 0 0 N/A

Relay Therapeutics presently has a consensus target price of $33.43, suggesting a potential upside of 62.43%. Given Relay Therapeutics’ higher possible upside, equities research analysts clearly believe Relay Therapeutics is more favorable than LadRx.

Insider and Institutional Ownership

0.1% of LadRx shares are held by institutional investors. 4.4% of Relay Therapeutics shares are held by company insiders. Comparatively, 12.8% of LadRx shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

LadRx beats Relay Therapeutics on 7 of the 12 factors compared between the two stocks.

About Relay Therapeutics

(Get Rating)

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 RLY-1971, an oral small molecule inhibitor of protein tyrosine phosphatase Src homology region 2 domain-containing phosphatase-2 that is in Phase 1 trial in patients with advanced solid tumors. 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 RLY-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 LadRx

(Get Rating)

LadRx Corporation, a biopharmaceutical company, engages in the discovery and development of therapeutics to treat patients with cancer. The company's advanced drug conjugate, aldoxorubicin that is in late-stage clinical trials is a version of anti-cancer drug doxorubicin. Its pre-clinical therapeutics comprise linker activated drug releases 7, 8, 9, and 10 targeted against cancer The company was formerly known as CytRx Corporation and changed its name to LadRx Corporation in September 2022. LadRx Corporation was incorporated in 1985 and is headquartered in Los Angeles, California.

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