Analyzing Revolution Medicines (NASDAQ:RVMD) and Cocrystal Pharma (NASDAQ:COCP)

Cocrystal Pharma (NASDAQ:COCP) and Revolution Medicines (NASDAQ:RVMD) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Earnings & Valuation

This table compares Cocrystal Pharma and Revolution Medicines”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cocrystal Pharma	N/A	N/A	-$8.83 million	($0.73)	-1.29
Revolution Medicines	$11.58 million	3,356.55	-$1.13 billion	($7.07)	-25.86

Cocrystal Pharma has higher earnings, but lower revenue than Revolution Medicines. Revolution Medicines is trading at a lower price-to-earnings ratio than Cocrystal Pharma, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Cocrystal Pharma has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Revolution Medicines has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Insider and Institutional Ownership

6.7% of Cocrystal Pharma shares are held by institutional investors. Comparatively, 94.3% of Revolution Medicines shares are held by institutional investors. 39.4% of Cocrystal Pharma shares are held by insiders. Comparatively, 7.6% of Revolution Medicines shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Cocrystal Pharma and Revolution Medicines, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cocrystal Pharma	1	0	0	0	1.00
Revolution Medicines	1	1	18	2	2.95

Revolution Medicines has a consensus target price of $144.06, suggesting a potential downside of 21.21%. Given Revolution Medicines’ stronger consensus rating and higher probable upside, analysts clearly believe Revolution Medicines is more favorable than Cocrystal Pharma.

Profitability

This table compares Cocrystal Pharma and Revolution Medicines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cocrystal Pharma	N/A	-150.61%	-97.86%
Revolution Medicines	N/A	-83.22%	-59.06%

Summary

Revolution Medicines beats Cocrystal Pharma on 8 of the 13 factors compared between the two stocks.

About Cocrystal Pharma

Cocrystal Pharma, Inc., a biotechnology company, focuses on the discovery and development of antiviral therapeutic treatments for serious and/or chronic viral diseases. It employs structure-based technologies to create antiviral drugs primarily to treat hepatitis C virus (HCV), influenza virus, coronavirus, norovirus, and respiratory virus infections. The company develops CC-31244, a HCV non-nucleoside polymerase inhibitor that has completed Phase II a clinical trial to treat HCV infection; and CC-42344, a PB2 inhibitor that has completed Phase I clinical trial for treating influenza infection. It is also involved in identifying and developing non-nucleoside polymerase inhibitors for norovirus infections. Cocrystal Pharma, Inc. has a license and research collaboration agreement with Merck Sharp & Dohme Corp. to discover and develop proprietary influenza A/B antiviral agents; and a license agreement with Kansas State University Research Foundation to develop antiviral compounds for the treatment of norovirus and coronavirus infections. The company is headquartered in Bothell, Washington.

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.