Critical Review: Revolution Medicines (NASDAQ:RVMD) vs. Aprea Therapeutics (NASDAQ:APRE)

Aprea Therapeutics (NASDAQ:APRE) and Revolution Medicines (NASDAQ:RVMD) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Volatility & Risk

Aprea Therapeutics has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Revolution Medicines has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Aprea Therapeutics and Revolution Medicines, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aprea Therapeutics	1	1	3	0	2.40
Revolution Medicines	1	1	18	2	2.95

Aprea Therapeutics currently has a consensus price target of $4.07, suggesting a potential upside of 550.98%. Revolution Medicines has a consensus price target of $144.67, suggesting a potential downside of 23.08%. Given Aprea Therapeutics’ higher probable upside, equities research analysts clearly believe Aprea Therapeutics is more favorable than Revolution Medicines.

Institutional and Insider Ownership

34.2% of Aprea Therapeutics shares are held by institutional investors. Comparatively, 94.3% of Revolution Medicines shares are held by institutional investors. 10.5% of Aprea Therapeutics shares are held by insiders. Comparatively, 7.6% of Revolution Medicines shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Aprea Therapeutics and Revolution Medicines”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aprea Therapeutics	$290,000.00	26.67	-$12.60 million	($1.54)	-0.41
Revolution Medicines	N/A	N/A	-$1.13 billion	($7.07)	-26.60

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aprea Therapeutics	-4,405.59%	-61.03%	-50.24%
Revolution Medicines	N/A	-83.22%	-59.06%

Summary

Aprea Therapeutics beats Revolution Medicines on 9 of the 14 factors compared between the two stocks.

About Aprea Therapeutics

Aprea Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing and commercializing novel synthetic lethality-based cancer therapeutics that targets DNA damage response pathways. Its lead product candidate is the ATRN-119 that is in Phase I clinical trials for treating advanced solid tumors. The company is also developing ATRN-1051 for the treatment of ovarian cancer; and APRE-DDRi for the treatment of advanced solid tumors. The company is headquartered in Doylestown, Pennsylvania.

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.