Monte Rosa Therapeutics (NASDAQ:GLUE – Get Free Report) and Relay Therapeutics (NASDAQ:RLAY – Get Free Report) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Insider and Institutional Ownership
80.0% of Monte Rosa Therapeutics shares are held by institutional investors. Comparatively, 97.0% of Relay Therapeutics shares are held by institutional investors. 6.4% of Monte Rosa Therapeutics shares are held by company insiders. Comparatively, 5.0% of Relay Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Monte Rosa Therapeutics and Relay Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Monte Rosa Therapeutics | $123.67 million | 8.73 | -$38.63 million | ($1.76) | -7.19 |
| Relay Therapeutics | $15.35 million | 268.96 | -$276.48 million | ($1.57) | -12.00 |
Monte Rosa Therapeutics has higher revenue and earnings than Relay Therapeutics. Relay Therapeutics is trading at a lower price-to-earnings ratio than Monte Rosa Therapeutics, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Monte Rosa Therapeutics and Relay Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Monte Rosa Therapeutics | 1 | 1 | 6 | 1 | 2.78 |
| Relay Therapeutics | 1 | 1 | 10 | 2 | 2.93 |
Monte Rosa Therapeutics currently has a consensus price target of $28.50, indicating a potential upside of 125.30%. Relay Therapeutics has a consensus price target of $25.92, indicating a potential upside of 37.56%. Given Monte Rosa Therapeutics’ higher probable upside, analysts clearly believe Monte Rosa Therapeutics is more favorable than Relay Therapeutics.
Risk and Volatility
Monte Rosa Therapeutics has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Relay Therapeutics has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.
Profitability
This table compares Monte Rosa Therapeutics and Relay Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Monte Rosa Therapeutics | -560.85% | -43.31% | -27.59% |
| Relay Therapeutics | N/A | -42.27% | -38.67% |
Summary
Relay Therapeutics beats Monte Rosa Therapeutics on 9 of the 15 factors compared between the two stocks.
About Monte Rosa Therapeutics
Monte Rosa Therapeutics, Inc., a clinical-stage biotechnology company, engages in the development of novel small molecule precision medicines that employ the body's natural mechanisms to selectively degrade therapeutically relevant proteins. The company develops MRT-2359, an orally bioavailable molecular glue degrader targeting the translation termination factor protein GSPT1 for the treatment of MYC-driven tumors; MRT-6160 for the treatment of systemic and central nervous system autoimmune diseases; and MRT-8102 for the treatment of IL-1?/NLRP3 driven inflammatory diseases. It also develops CDK2 to treat ovarian, uterine, and breast cancers. The company was incorporated in 2019 and is headquartered in Boston, Massachusetts.
About Relay Therapeutics
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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