Revolution Medicines (NASDAQ:RVMD – Get Free Report) and Viridian Therapeutics (NASDAQ:VRDN – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.
Insider & Institutional Ownership
94.3% of Revolution Medicines shares are held by institutional investors. 7.6% of Revolution Medicines shares are held by insiders. Comparatively, 2.4% of Viridian Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Revolution Medicines has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Viridian Therapeutics has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Revolution Medicines | 1 | 1 | 21 | 1 | 2.92 |
| Viridian Therapeutics | 1 | 0 | 12 | 0 | 2.85 |
Revolution Medicines presently has a consensus target price of $234.76, suggesting a potential upside of 23.72%. Viridian Therapeutics has a consensus target price of $38.69, suggesting a potential upside of 107.35%. Given Viridian Therapeutics’ higher probable upside, analysts plainly believe Viridian Therapeutics is more favorable than Revolution Medicines.
Profitability
This table compares Revolution Medicines and Viridian Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Revolution Medicines | N/A | -88.20% | -57.85% |
| Viridian Therapeutics | -505.86% | -72.97% | -42.80% |
Valuation & Earnings
This table compares Revolution Medicines and Viridian 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 | N/A | N/A | -$1.13 billion | ($8.82) | -21.51 |
| Viridian Therapeutics | $70.85 million | 29.84 | -$342.60 million | ($3.37) | -5.54 |
Viridian Therapeutics has higher revenue and earnings than Revolution Medicines. Revolution Medicines is trading at a lower price-to-earnings ratio than Viridian Therapeutics, indicating that it is currently the more affordable of 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 Viridian Therapeutics
Viridian Therapeutics, Inc., a biotechnology company, discover and develops treatments for serious and rare diseases. The company's product pipeline includes VRDN-001, a monoclonal antibody targeting insulin-like growth factor-1 receptor that is in Phase 3 clinical trial for the treatment of thyroid eye disease (TED); and VRDN-003, a next generation IGF-1R humanized monoclonal antibodies targeting IGF-1R and incorporating half-life extension technology for the treatment of TED. It also provides VRDN-006 a preclinical program for autoimmune disease. In addition, the company offers VRDN-006 and VRDN-008 a preclinical program for autoimmune disease. The company was formerly known as Miragen Therapeutics, Inc. and changed its name to Viridian Therapeutics, Inc. in January 2021.Viridian Therapeutics, Inc. was founded in 2010 and is headquartered in Waltham, Massachusetts.
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