Outlook Therapeutics (NASDAQ:OTLK) versus Revolution Medicines (NASDAQ:RVMD) Head to Head Comparison

Outlook Therapeutics (NASDAQ:OTLK) and Revolution Medicines (NASDAQ:RVMD) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings for Outlook Therapeutics and Revolution Medicines, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outlook Therapeutics	0	1	7	0	2.88
Revolution Medicines	0	0	10	0	3.00

Outlook Therapeutics presently has a consensus target price of $46.43, suggesting a potential upside of 401.35%. Revolution Medicines has a consensus target price of $38.80, suggesting a potential upside of 17.61%. Given Outlook Therapeutics’ higher possible upside, analysts clearly believe Outlook Therapeutics is more favorable than Revolution Medicines.

Valuation & Earnings

This table compares Outlook 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
Outlook Therapeutics	N/A	N/A	-$58.98 million	($4.00)	-2.32
Revolution Medicines	$11.58 million	469.18	-$436.37 million	($3.77)	-8.75

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Outlook Therapeutics	N/A	-3,741.39%	-132.37%
Revolution Medicines	N/A	-38.39%	-33.61%

Risk & Volatility

Outlook Therapeutics has a beta of 0.04, suggesting that its share price is 96% less volatile than the S&P 500. Comparatively, Revolution Medicines has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.

Insider & Institutional Ownership

11.2% of Outlook Therapeutics shares are owned by institutional investors. Comparatively, 94.3% of Revolution Medicines shares are owned by institutional investors. 5.3% of Outlook Therapeutics shares are owned by insiders. Comparatively, 8.5% of Revolution Medicines shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Revolution Medicines beats Outlook Therapeutics on 9 of the 12 factors compared between the two stocks.

About Outlook Therapeutics

Outlook Therapeutics, Inc., operates as a clinical-stage biopharmaceutical company, focuses on developing and commercializing monoclonal antibodies for various ophthalmic indications. Its lead product candidate is ONS-5010, an ophthalmic formulation of bevacizumab product candidate that is in Phase-III clinical trial for the treatment of wet age-related macular degeneration and other retina diseases. Outlook Therapeutics, Inc. has collaboration and license agreements with BioLexis Pte. Ltd. and Zhejiang Huahai Pharmaceutical Co., Ltd. The company was formerly known as Oncobiologics, Inc. and changed its name to Outlook Therapeutics, Inc. in November 2018. Outlook Therapeutics, Inc. was incorporated in 2010 and is based in Iselin, New Jersey.

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.