Analyzing Kura Oncology (NASDAQ:KURA) & Repare Therapeutics (NASDAQ:RPTX)

Repare Therapeutics (NASDAQ:RPTX) and Kura Oncology (NASDAQ:KURA) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Valuation & Earnings

This table compares Repare Therapeutics and Kura Oncology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repare Therapeutics	$53.48 million	0.78	-$93.80 million	($2.00)	-0.49
Kura Oncology	$53.88 million	9.89	-$152.63 million	($2.03)	-3.25

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Repare Therapeutics and Kura Oncology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repare Therapeutics	0	2	2	0	2.50
Kura Oncology	0	3	7	2	2.92

Repare Therapeutics currently has a consensus price target of $4.50, suggesting a potential upside of 356.44%. Kura Oncology has a consensus price target of $25.50, suggesting a potential upside of 286.36%. Given Repare Therapeutics’ higher possible upside, analysts plainly believe Repare Therapeutics is more favorable than Kura Oncology.

Profitability

This table compares Repare Therapeutics and Kura Oncology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Repare Therapeutics	-99.76%	-40.87%	-35.07%
Kura Oncology	N/A	-44.09%	-39.57%

Insider and Institutional Ownership

85.1% of Repare Therapeutics shares are owned by institutional investors. 21.6% of Repare Therapeutics shares are owned by company insiders. Comparatively, 5.5% of Kura Oncology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Repare Therapeutics has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Kura Oncology has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Summary

Repare Therapeutics beats Kura Oncology on 9 of the 15 factors compared between the two stocks.

About Repare Therapeutics

Repare Therapeutics Inc., a clinical-stage precision oncology company, engages in the discovery and development of therapeutics by using its synthetic lethality approach in Canada and the United States. It uses its SNIPRx, a proprietary, genome-wide, and CRISPR-enabled platform, to discover, validate, and build a pipeline of SL-based therapeutics that focuses on genomic instability, including DNA damage repair. The company's lead product candidate is Camonsertib (RP-3500), an oral small molecule inhibitor under Phase ½ development for the treatment of solid tumors with specific DNA damage repair-related genomic alterations. It is also developing Lunresertib (RP-6306), a PKMYT1 Inhibitor, which is under Phase 1 clinical trial for tumors with genetic alterations characterized by CCNE1 amplification; RP-1664, an oral PLK4 inhibitor, under Phase 1 clinical trial designed to harness the synthetic lethal relationship with TRIM37 amplification or overexpression in solid tumors; and RP-3467, a polymerase theta adenosinetriphosphatase (ATPase) inhibitor, a SL target associated with BRCA mutations and other genomic alterations. The company has license and collaboration agreement with Hoffmann-La Roche Inc. and F. Hoffmann-La Roche Ltd; Bristol-Myers Squibb Company; New York University; and Ono Pharmaceutical Co., as well as a clinical study and collaboration agreement with Debiopharm to explore the synthetic lethal combination of PKMYT1 and WEE1 inhibition in cancer. Repare Therapeutics Inc. was incorporated in 2016 and is headquartered in Montréal, Canada.

About Kura Oncology

Kura Oncology, Inc., a clinical-stage biopharmaceutical company, develops medicines for the treatment of cancer. The company’s pipeline consists of small molecule product candidates that target cancer. Its lead product candidates are ziftomenib, an orally bioavailable small molecule inhibitor of the menin-KMT2A interaction for the treatment of genetically defined subsets of acute leukemias, including acute myeloid leukemia and acute lymphoblastic leukemia; tipifarnib, an orally bioavailable farnesyl transferase inhibitor combination with alpelisib for patients with PIK3CA-dependent HNSCC; and KO-2806, a farnesyl transferase inhibitor for the treatment of solid tumors. It has a clinical collaboration with Novartis Pharma AG to evaluate the combination of tipifarnib and alpelisib in patients with head and neck squamous cell carcinoma whose tumors have HRAS overexpression and/or PIK3CA mutation and/or amplification. The company was founded in 2014 and is headquartered in San Diego, California.