Relay Therapeutics (NASDAQ:RLAY – Get Free Report) and Oramed Pharmaceuticals (NASDAQ:ORMP – Get Free Report) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.
Institutional and Insider Ownership
97.0% of Relay Therapeutics shares are owned by institutional investors. Comparatively, 12.7% of Oramed Pharmaceuticals shares are owned by institutional investors. 5.0% of Relay Therapeutics shares are owned by company insiders. Comparatively, 20.8% of Oramed Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Relay Therapeutics and Oramed Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Relay Therapeutics | $10.35 million | 392.28 | -$276.48 million | ($1.51) | -12.17 |
| Oramed Pharmaceuticals | $2.00 million | 84.14 | $64.05 million | $4.12 | 0.98 |
Oramed Pharmaceuticals has lower revenue, but higher earnings than Relay Therapeutics. Relay Therapeutics is trading at a lower price-to-earnings ratio than Oramed Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for Relay Therapeutics and Oramed Pharmaceuticals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Relay Therapeutics | 1 | 1 | 11 | 1 | 2.86 |
| Oramed Pharmaceuticals | 0 | 0 | 1 | 0 | 3.00 |
Relay Therapeutics currently has a consensus target price of $27.00, suggesting a potential upside of 46.94%. Given Relay Therapeutics’ higher probable upside, equities research analysts plainly believe Relay Therapeutics is more favorable than Oramed Pharmaceuticals.
Profitability
This table compares Relay Therapeutics and Oramed Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Relay Therapeutics | N/A | -40.25% | -36.82% |
| Oramed Pharmaceuticals | N/A | -5.17% | -4.54% |
Risk and Volatility
Relay Therapeutics has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, Oramed Pharmaceuticals has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.
About Relay Therapeutics
Relay Therapeutics, Inc. is a clinical-stage biotechnology company focused on discovering and developing medicines for patients with serious diseases, with an emphasis on cancer. The company uses its computational drug discovery platform to study how proteins move and interact, aiming to identify drug targets and design therapies against them. Relay’s research combines experimental biology, structural biology and computational methods. Its drug development programs have included candidates targeting cancer-related pathways, such as FGFR2 and PI3Kα.
About Oramed Pharmaceuticals
Oramed Pharmaceuticals Inc. (NASDAQ: ORMP) is a biopharmaceutical company focused on developing oral formulations of drugs that are typically administered by injection. The company’s proprietary Protein Oral Delivery (POD™) technology is designed to protect therapeutic proteins from degradation in the digestive system and facilitate their absorption through the gastrointestinal tract. Oramed’s development programs have primarily focused on oral insulin, including its investigational ORMD-0801 product candidate for the treatment of diabetes.
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