Head-To-Head Analysis: Relay Therapeutics (NASDAQ:RLAY) and Allogene Therapeutics (NASDAQ:ALLO)

Allogene Therapeutics (NASDAQ:ALLO) and Relay Therapeutics (NASDAQ:RLAY) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Risk and Volatility

Allogene Therapeutics has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Relay Therapeutics has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.

Valuation & Earnings

This table compares Allogene Therapeutics and Relay Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allogene Therapeutics	$22,000.00	13,529.68	-$327.27 million	($1.33)	-1.03
Relay Therapeutics	$10.01 million	41.84	-$341.97 million	($2.39)	-1.03

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

Insider & Institutional Ownership

83.6% of Allogene Therapeutics shares are owned by institutional investors. Comparatively, 97.0% of Relay Therapeutics shares are owned by institutional investors. 24.3% of Allogene Therapeutics shares are owned by company insiders. Comparatively, 4.3% of Relay Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Allogene Therapeutics and Relay Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allogene Therapeutics	0	1	9	0	2.90
Relay Therapeutics	0	1	9	0	2.90

Allogene Therapeutics presently has a consensus target price of $9.29, indicating a potential upside of 578.02%. Relay Therapeutics has a consensus target price of $19.80, indicating a potential upside of 701.62%. Given Relay Therapeutics’ higher probable upside, analysts plainly believe Relay Therapeutics is more favorable than Allogene Therapeutics.

Profitability

This table compares Allogene Therapeutics and Relay Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allogene Therapeutics	N/A	-52.13%	-41.29%
Relay Therapeutics	N/A	-45.75%	-40.75%

Summary

Relay Therapeutics beats Allogene Therapeutics on 6 of the 11 factors compared between the two stocks.

About Allogene Therapeutics

Allogene Therapeutics, Inc., a clinical stage immuno-oncology company, develops and commercializes genetically engineered allogeneic T cell therapies for the treatment of cancer. It develops, manufactures, and commercializes UCART19, an allogeneic chimeric antigen receptor (CAR) T cell product candidate for the treatment of pediatric and adult patients with R/R CD19 positive B-cell acute lymphoblastic leukemia (ALL). The company also develops cemacabtagene ansegedleucel, an engineered allogeneic CAR T cell product candidate that targets CD19 for the treatment of large B-cell lymphoma; and is in Phase 1b clinical trial for the treatment of chronic lymphocytic leukemia. In addition, it is developing ALLO-715, an allogeneic CAR T cell product candidate that is in a Phase 1 clinical trial for treating R/R multiple myeloma; ALLO-605, an allogeneic CAR T cell product candidate that is in a Phase I clinical trial for the treatment of multiple myeloma; ALLO-647, an anti-CD52 monoclonal antibody; CD70 to treat renal cell cancer; ALLO-316, an allogeneic CAR T cell product candidate that is in Phase 1 clinical trial for the treatment of advanced or metastatic RCC; ALLO-329 for the treatment of certain autoimmune diseases; DLL3 for the treatment of small cell lung cancer and other aggressive neuroendocrine tumors; and Claudin 18.2 for the treatment of gastric and pancreatic cancer. The company has license and collaboration agreements with Pfizer Inc.; Servier; Cellectis S.A.; and Notch Therapeutics Inc. It also has a strategic collaboration agreement with The University of Texas MD Anderson Cancer Center for the preclinical and clinical investigation of allogeneic CAR T cell product candidates; and a strategic partnership with Foresight Diagnostics to develop MRD-based In-Vitro Diagnostic for use in ALPHA3. The company was incorporated in 2017 and is headquartered in South San Francisco, California.

About Relay Therapeutics

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 Migoprotafib (GDC-1971), an oral, small molecule, potent and selective inhibitor of the protein tyrosine phosphatase SHP2 that binds and stabilizes Src homology region 2 domain-containing phosphatase-2 (SHP2) as a monotherapy in patients with advanced or metastatic solid tumors. In addition, 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 GDC-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.