Revolution Medicines (NASDAQ:RVMD – Get Free Report) and Agios Pharmaceuticals (NASDAQ:AGIO – Get Free Report) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.
Earnings and Valuation
This table compares Revolution Medicines and Agios Pharmaceuticals”s 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 | 3,403.90 | -$1.13 billion | ($8.82) | -20.85 |
| Agios Pharmaceuticals | $54.03 million | 40.72 | -$412.78 million | ($7.01) | -5.26 |
Agios Pharmaceuticals has higher revenue and earnings than Revolution Medicines. Revolution Medicines is trading at a lower price-to-earnings ratio than Agios Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Revolution Medicines has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Agios Pharmaceuticals has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.
Insider & Institutional Ownership
94.3% of Revolution Medicines shares are held by institutional investors. 7.6% of Revolution Medicines shares are held by insiders. Comparatively, 5.4% of Agios Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Revolution Medicines and Agios Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Revolution Medicines | N/A | -88.20% | -57.85% |
| Agios Pharmaceuticals | -418.24% | -35.67% | -33.06% |
Analyst Recommendations
This is a breakdown of recent ratings for Revolution Medicines and Agios Pharmaceuticals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Revolution Medicines | 1 | 1 | 22 | 1 | 2.92 |
| Agios Pharmaceuticals | 1 | 4 | 5 | 1 | 2.55 |
Revolution Medicines presently has a consensus target price of $242.90, indicating a potential upside of 32.09%. Agios Pharmaceuticals has a consensus target price of $41.50, indicating a potential upside of 12.62%. Given Revolution Medicines’ stronger consensus rating and higher possible upside, research analysts plainly believe Revolution Medicines is more favorable than Agios Pharmaceuticals.
Summary
Revolution Medicines beats Agios Pharmaceuticals on 8 of the 13 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 Agios Pharmaceuticals
Agios Pharmaceuticals, Inc., a biopharmaceutical company, discovers and develops medicines in the field of cellular metabolism in the United States. Its lead product includes PYRUKYND (mitapivat), an activator of wild-type and mutant pyruvate kinase (PK), enzymes for the treatment of hemolytic anemias. The company develops AG-946, a PK activator for treating lower-risk myelodysplastic syndrome and hemolytic anemias; and AG-181, a phenylalanine hydroxylase stabilizer for the treatment of phenylketonuria. Its preclinical product is siRNA for the treatment of polycythemia vera, a rare blood disorder. Agios Pharmaceuticals, Inc. was incorporated in 2007 and is headquartered in Cambridge, Massachusetts.
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