Financial Analysis: RAPT Therapeutics (NASDAQ:RAPT) versus Elanco Animal Health (NYSE:ELAN)

Elanco Animal Health (NYSE:ELAN) and RAPT Therapeutics (NASDAQ:RAPT) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Profitability

This table compares Elanco Animal Health and RAPT Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elanco Animal Health	4.60%	6.78%	3.03%
RAPT Therapeutics	N/A	-83.31%	-70.67%

Insider and Institutional Ownership

97.5% of Elanco Animal Health shares are held by institutional investors. Comparatively, 99.1% of RAPT Therapeutics shares are held by institutional investors. 0.6% of Elanco Animal Health shares are held by insiders. Comparatively, 6.6% of RAPT Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Elanco Animal Health has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, RAPT Therapeutics has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Elanco Animal Health and RAPT Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elanco Animal Health	1	2	4	0	2.43
RAPT Therapeutics	1	10	2	0	2.08

Elanco Animal Health presently has a consensus price target of $17.14, suggesting a potential upside of 22.10%. RAPT Therapeutics has a consensus price target of $9.50, suggesting a potential upside of 642.19%. Given RAPT Therapeutics’ higher possible upside, analysts plainly believe RAPT Therapeutics is more favorable than Elanco Animal Health.

Valuation and Earnings

This table compares Elanco Animal Health and RAPT Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elanco Animal Health	$4.45 billion	1.56	-$1.23 billion	$0.40	35.10
RAPT Therapeutics	$1.53 million	29.20	-$116.80 million	($2.77)	-0.46

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

Summary

Elanco Animal Health beats RAPT Therapeutics on 9 of the 14 factors compared between the two stocks.

About Elanco Animal Health

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands. The company sells its products to third-party distributors; veterinarians; and farm animal producers, including beef and dairy farmers, as well as pork, poultry, and aquaculture operations. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Greenfield, Indiana.

About RAPT Therapeutics

RAPT Therapeutics, Inc., a clinical-stage immunology-based biopharmaceutical company, focuses on discovery, development, and commercialization of oral small molecule therapies for patients with unmet needs in oncology and inflammatory diseases in the United States. The company's lead inflammation drug candidate is zelnecirnon (RPT193), a C-C motif chemokine receptor 4 (CCR4) antagonist that selectively inhibit the migration of type 2 T helper cells into inflamed tissues. Its lead oncology drug candidate is tivumecirnon (FLX475), an oral small molecule CCR4 antagonist that is in the Phase 1/2 clinical trial to investigate as a monotherapy and in combination with pembrolizumab in patients with advanced cancer. The company was formerly known as FLX Bio, Inc. and changed its name to RAPT Therapeutics, Inc. in May 2019. RAPT Therapeutics, Inc. was incorporated in 2015 and is headquartered in South San Francisco, California. RAPT Therapeutics, Inc. operates as a subsidiary of Bristol-Myers Squibb Company