Comparing Relay Therapeutics (NASDAQ:RLAY) and Krystal Biotech (NASDAQ:KRYS)

Relay Therapeutics (NASDAQ:RLAY) and Krystal Biotech (NASDAQ:KRYS) are both mid-cap healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Insider & Institutional Ownership

97.0% of Relay Therapeutics shares are held by institutional investors. Comparatively, 86.3% of Krystal Biotech shares are held by institutional investors. 5.0% of Relay Therapeutics shares are held by company insiders. Comparatively, 13.1% of Krystal Biotech shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Relay Therapeutics and Krystal Biotech”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Relay Therapeutics	$15.35 million	256.69	-$276.48 million	($1.57)	-11.45
Krystal Biotech	$389.13 million	25.26	$204.83 million	$7.98	41.61

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

Analyst Recommendations

This is a summary of current ratings and price targets for Relay Therapeutics and Krystal Biotech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Relay Therapeutics	1	1	10	2	2.93
Krystal Biotech	0	2	10	2	3.00

Relay Therapeutics currently has a consensus price target of $25.92, indicating a potential upside of 44.14%. Krystal Biotech has a consensus price target of $377.20, indicating a potential upside of 13.59%. Given Relay Therapeutics’ higher possible upside, analysts clearly believe Relay Therapeutics is more favorable than Krystal Biotech.

Profitability

This table compares Relay Therapeutics and Krystal Biotech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Relay Therapeutics	N/A	-42.27%	-38.67%
Krystal Biotech	54.82%	19.34%	17.65%

Volatility & Risk

Relay Therapeutics has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Krystal Biotech has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.

Summary

Krystal Biotech beats Relay Therapeutics on 9 of the 13 factors compared between the two stocks.

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.

About Krystal Biotech

Krystal Biotech, Inc., a commercial-stage biotechnology company, discovers, develops, and commercializes genetic medicines for patients with rare diseases in the United States. It commercializes VYJUVEK (beremagene geperpavec-svdt, or B-VEC) for the treatment of dystrophic epidermolysis bullosa (DEB). The company also develops KB105, which is in Phase 1/2 clinical trials for treating patients with deficient autosomal recessive congenital ichthyosis; KB104 for treating netherton syndrome; KB407 that is in Phase 1 clinical trials for treating cystic fibrosis; KB707 that is in Phase 1 clinical trials for the treatment of anti-PD-1 relapsed/refractory; KB408, which is in Phase 1 clinical trials for treating Alpha-1 antitrypsin deficiency; and KB301 that is in Phase 2 clinical trials for treating aesthetic skin conditions, as well as in open label study with ophthalmic B-VEC for treating for ocular complications of deb. Krystal Biotech, Inc. was founded in 2016 and is headquartered in Pittsburgh, Pennsylvania.