Relay Therapeutics (RLAY) vs. Its Competitors Head to Head Review

Relay Therapeutics (NASDAQ:RLAY) is one of 844 publicly-traded companies in the “Biotechnology” industry, but how does it weigh in compared to its competitors? We will compare Relay Therapeutics to similar businesses based on the strength of its valuation, risk, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Relay Therapeutics and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Relay Therapeutics	1	1	10	2	2.93
Relay Therapeutics Competitors	9800	15081	45386	1576	2.54

Relay Therapeutics presently has a consensus target price of $25.92, suggesting a potential upside of 52.45%. As a group, “Biotechnology” companies have a potential upside of 104.76%. Given Relay Therapeutics’ competitors higher possible upside, analysts clearly believe Relay Therapeutics has less favorable growth aspects than its competitors.

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, Relay Therapeutics’ competitors have a beta of 1.15, suggesting that their average share price is 15% more volatile than the S&P 500.

Profitability

This table compares Relay Therapeutics and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Relay Therapeutics	N/A	-41.96%	-38.49%
Relay Therapeutics Competitors	-12,359.35%	-203.09%	-30.93%

Insider & Institutional Ownership

97.0% of Relay Therapeutics shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Biotechnology” companies are owned by institutional investors. 5.0% of Relay Therapeutics shares are owned by insiders. Comparatively, 13.0% of shares of all “Biotechnology” companies are owned by 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 its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Relay Therapeutics	$15.35 million	-$276.48 million	-11.26
Relay Therapeutics Competitors	$723.49 million	$12.98 million	-10.84

Relay Therapeutics’ competitors have higher revenue and earnings than Relay Therapeutics. Relay Therapeutics is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Relay Therapeutics beats its competitors on 7 of the 13 factors compared.

Relay Therapeutics Company Profile

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.