Reviewing Organovo (NASDAQ:ONVO) and Relay Therapeutics (NASDAQ:RLAY)

Organovo (NASDAQ:ONVOGet Free Report) and Relay Therapeutics (NASDAQ:RLAYGet Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Earnings & Valuation

This table compares Organovo and Relay Therapeutics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Organovo $110,000.00 87.06 -$17.26 million ($2.17) -0.44
Relay Therapeutics $25.55 million 37.77 -$341.97 million ($2.64) -2.75

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

Volatility & Risk

Organovo has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Relay Therapeutics has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Organovo and Relay Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Organovo 0 0 0 0 N/A
Relay Therapeutics 0 0 7 0 3.00

Relay Therapeutics has a consensus price target of $22.20, indicating a potential upside of 205.36%. Given Relay Therapeutics’ higher possible upside, analysts plainly believe Relay Therapeutics is more favorable than Organovo.

Insider & Institutional Ownership

8.2% of Organovo shares are held by institutional investors. Comparatively, 97.0% of Relay Therapeutics shares are held by institutional investors. 4.0% of Organovo shares are held by company insiders. Comparatively, 4.3% of Relay Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Organovo N/A -195.52% -142.62%
Relay Therapeutics -1,263.49% -42.66% -37.04%

Summary

Relay Therapeutics beats Organovo on 8 of the 13 factors compared between the two stocks.

About Organovo

(Get Free Report)

Organovo Holdings, Inc., a biotechnology company, focuses on developing 3D tissues that recapitulate key aspects of human disease. Its 3D human tissue platform includes its proprietary NovoGen Bioprinters, which are automated devices that enable the fabrication of 3D living tissues comprised mammalian cells; and related technologies for preparing bio-inks and bioprinting multicellular tissues with complex architecture. The company offers ExVive 3D bioprinted human liver tissue with distinct hepatocellular and non-parenchymal cell compartments. The company was incorporated in 2007 and is headquartered in San Diego, California.

About Relay Therapeutics

(Get Free Report)

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.

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