Critical Contrast: Revolution Medicines (NASDAQ:RVMD) vs. Fresh Tracks Therapeutics (NASDAQ:FRTX)

Revolution Medicines (NASDAQ:RVMD) and Fresh Tracks Therapeutics (NASDAQ:FRTX) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a summary of recent ratings and target prices for Revolution Medicines and Fresh Tracks Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolution Medicines	0	0	10	1	3.09
Fresh Tracks Therapeutics	0	0	0	0	N/A

Revolution Medicines currently has a consensus target price of $54.00, indicating a potential upside of 7.08%. Given Revolution Medicines’ higher probable upside, equities analysts clearly believe Revolution Medicines is more favorable than Fresh Tracks Therapeutics.

Risk and Volatility

Revolution Medicines has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Fresh Tracks Therapeutics has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Profitability

This table compares Revolution Medicines and Fresh Tracks Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Revolution Medicines	N/A	-34.57%	-30.71%
Fresh Tracks Therapeutics	N/A	N/A	N/A

Institutional and Insider Ownership

94.3% of Revolution Medicines shares are owned by institutional investors. Comparatively, 25.0% of Fresh Tracks Therapeutics shares are owned by institutional investors. 8.0% of Revolution Medicines shares are owned by company insiders. Comparatively, 0.2% of Fresh Tracks Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Revolution Medicines and Fresh Tracks Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revolution Medicines	$11.58 million	727.45	-$436.37 million	($3.64)	-13.85
Fresh Tracks Therapeutics	$8.01 million	0.53	-$5.69 million	($1.41)	-0.50

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

Summary

Revolution Medicines beats Fresh Tracks Therapeutics on 8 of the 12 factors compared between 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 Fresh Tracks Therapeutics

Fresh Tracks Therapeutics, Inc. does not have significant operations. Previously, the company was engaged in the development of various prescription therapeutics for the treatment of autoimmune, inflammatory, and other debilitating diseases in the United States. Fresh Tracks Therapeutics, Inc. was founded in 2009 and is headquartered in Boulder, Colorado.