Head-To-Head Survey: Relay Therapeutics (NASDAQ:RLAY) and Anavex Life Sciences (NASDAQ:AVXL)

Relay Therapeutics (NASDAQ:RLAYGet Rating) and Anavex Life Sciences (NASDAQ:AVXLGet Rating) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Relay Therapeutics and Anavex Life Sciences’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Relay Therapeutics $3.03 million 856.81 -$363.87 million ($2.56) -9.31
Anavex Life Sciences N/A N/A -$37.91 million ($0.59) -15.39

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

Institutional & Insider Ownership

31.9% of Anavex Life Sciences shares are owned by institutional investors. 4.4% of Relay Therapeutics shares are owned by insiders. Comparatively, 11.0% of Anavex Life Sciences shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Relay Therapeutics 1 0 6 0 2.71
Anavex Life Sciences 0 0 3 0 3.00

Relay Therapeutics presently has a consensus price target of $40.50, indicating a potential upside of 69.88%. Anavex Life Sciences has a consensus price target of $38.67, indicating a potential upside of 325.84%. Given Anavex Life Sciences’ stronger consensus rating and higher possible upside, analysts plainly believe Anavex Life Sciences is more favorable than Relay Therapeutics.

Volatility & Risk

Relay Therapeutics has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Anavex Life Sciences has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Profitability

This table compares Relay Therapeutics and Anavex Life Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Relay Therapeutics -13,243.58% -21.38% -18.77%
Anavex Life Sciences N/A -30.26% -28.42%

Summary

Anavex Life Sciences beats Relay Therapeutics on 7 of the 13 factors compared between the two stocks.

About Relay Therapeutics

(Get Rating)

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 RLY-1971, an oral small molecule inhibitor of protein tyrosine phosphatase Src homology region 2 domain-containing phosphatase-2 that is in Phase 1 trial in patients with advanced solid tumors. 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 RLY-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.

About Anavex Life Sciences

(Get Rating)

Anavex Life Sciences Corp., a clinical stage biopharmaceutical company, engages in the development of drug candidates for the treatment of central nervous system (CNS) diseases. Its lead drug candidate is ANAVEX 2-73, which is in Phase III clinical trial for the treatment of Alzheimer's disease; Phase III clinical trial to treat pediatric patients with Rett syndrome; Phase II clinical trial for the treatment of Parkinson's disease; and preclinical clinical trials to treat epilepsy, infantile spasms, Fragile X syndrome, Angelman syndrome, multiple sclerosis, and tuberous sclerosis complex. The company's drug candidate also comprises ANAVEX 3-71, which is in Phase I clinical trial for the treatment of frontotemporal dementia and other dementia indications; and preclinical clinical trials for the treatment of neurodegenerative diseases, such as Alzheimer's and Parkinson's diseases. Its preclinical drug candidates include ANAVEX 1-41, a sigma-1 receptor agonist for the treatment of depression, stroke, Parkinson's, and Alzheimer's diseases; ANAVEX 1066, a mixed sigma-1/sigma-2 ligand for the potential treatment of neuropathic and visceral pain; and ANAVEX 1037 to treat prostate and pancreatic cancer. The company was incorporated in 2004 and is headquartered in New York, New York.

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