Critical Survey: BioMarin Pharmaceutical (NASDAQ:BMRN) & Relay Therapeutics (NASDAQ:RLAY)

BioMarin Pharmaceutical (NASDAQ:BMRN – Get Free Report) and Relay Therapeutics (NASDAQ:RLAY – Get Free Report) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

98.7% of BioMarin Pharmaceutical shares are held by institutional investors. Comparatively, 97.0% of Relay Therapeutics shares are held by institutional investors. 0.7% of BioMarin Pharmaceutical 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for BioMarin Pharmaceutical and Relay Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BioMarin Pharmaceutical 1 7 14 1 2.65
Relay Therapeutics 1 1 10 2 2.93

BioMarin Pharmaceutical currently has a consensus price target of $87.82, suggesting a potential upside of 60.28%. Relay Therapeutics has a consensus price target of $25.92, suggesting a potential upside of 44.95%. Given BioMarin Pharmaceutical’s higher possible upside, equities analysts plainly believe BioMarin Pharmaceutical is more favorable than Relay Therapeutics.

Risk and Volatility

BioMarin Pharmaceutical has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500. Comparatively, Relay Therapeutics has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500.

Valuation & Earnings

This table compares BioMarin Pharmaceutical and Relay Therapeutics”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BioMarin Pharmaceutical $3.41 billion 3.11 $348.90 million $0.37 148.08
Relay Therapeutics $10.35 million 378.58 -$276.48 million ($1.57) -11.39

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

Profitability

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

Net Margins Return on Equity Return on Assets
BioMarin Pharmaceutical 2.14% 5.32% 3.69%
Relay Therapeutics N/A -42.27% -38.67%

Summary

BioMarin Pharmaceutical beats Relay Therapeutics on 10 of the 15 factors compared between the two stocks.

About BioMarin Pharmaceutical

(Get Free Report)

BioMarin Pharmaceutical Inc. develops and commercializes therapies for people with serious and life-threatening rare diseases and medical conditions. Its commercial products include Vimizim, an enzyme replacement therapy for the treatment of mucopolysaccharidosis (MPS) IV type A, a lysosomal storage disorder; Naglazyme, a recombinant form of N-acetylgalactosamine 4-sulfatase for patients with MPS VI; and Kuvan, a proprietary synthetic oral form of 6R-BH4 that is used to treat patients with phenylketonuria (PKU), an inherited metabolic disease. The company's commercial products also comprise Palynziq, a PEGylated recombinant phenylalanine ammonia lyase enzyme, which is delivered through subcutaneous injection to reduce blood Phe concentrations; Brineura, a recombinant human tripeptidyl peptidase 1 for the treatment of patients with ceroid lipofuscinosis type 2, a form of Batten disease; Voxzogo, a once daily injection analog of c-type natriuretic peptide for the treatment of achondroplasia; and Aldurazyme, a purified protein designed to be identical to a naturally occurring form of the human enzyme alpha-L-iduronidase. In addition, it develops Roctavian, an adeno associated virus vector, for the treatment of patients with severe hemophilia A. The company serves specialty pharmacies, hospitals, and non-U.S. government agencies, as well as distributors and pharmaceutical wholesalers in the United States, Europe, Latin America, and internationally. BioMarin Pharmaceutical Inc. has license and collaboration agreements with Sarepta Therapeutics, Ares Trading S.A., Catalyst Pharmaceutical Partners, Inc. The company was incorporated in 1996 and is headquartered in San Rafael, 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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