Revolution Medicines (NASDAQ:RVMD – Get Free Report) and Protara Therapeutics (NASDAQ:TARA – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.
Insider and Institutional Ownership
94.3% of Revolution Medicines shares are owned by institutional investors. Comparatively, 38.1% of Protara Therapeutics shares are owned by institutional investors. 8.0% of Revolution Medicines shares are owned by insiders. Comparatively, 12.5% of Protara Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility & Risk
Revolution Medicines has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Protara Therapeutics has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Revolution Medicines | 0 | 0 | 12 | 1 | 3.08 |
| Protara Therapeutics | 0 | 0 | 3 | 0 | 3.00 |
Revolution Medicines currently has a consensus price target of $66.31, suggesting a potential upside of 74.68%. Protara Therapeutics has a consensus price target of $22.67, suggesting a potential upside of 574.60%. Given Protara Therapeutics’ higher possible upside, analysts plainly believe Protara Therapeutics is more favorable than Revolution Medicines.
Valuation & Earnings
This table compares Revolution Medicines and Protara Therapeutics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Revolution Medicines | $742,000.00 | 8,605.92 | -$436.37 million | ($3.57) | -10.63 |
| Protara Therapeutics | N/A | N/A | -$40.42 million | ($2.82) | -1.19 |
Protara Therapeutics has lower revenue, but higher earnings than Revolution Medicines. Revolution Medicines is trading at a lower price-to-earnings ratio than Protara Therapeutics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Revolution Medicines and Protara Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Revolution Medicines | N/A | -33.67% | -30.08% |
| Protara Therapeutics | N/A | -55.96% | -49.06% |
Summary
Revolution Medicines beats Protara Therapeutics on 7 of the 13 factors compared between the two stocks.
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.
About Protara Therapeutics
Protara Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in advancing transformative therapies for the treatment of cancer and rare diseases. The company's lead program is TARA-002, an investigational cell therapy, which is in Phase II clinical trial for the treatment of non-muscle invasive bladder cancer and lymphatic malformations. It is also developing intravenous choline chloride, an investigational phospholipid substrate replacement therapy that is in Phase II clinical trial for patients receiving parenteral nutrition. The company is headquartered in New York, New York.
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