Revolution Medicines (NASDAQ:RVMD) vs. Outlook Therapeutics (NASDAQ:OTLK) Head to Head Comparison
by Renee Jackson · The Cerbat GemOutlook Therapeutics (NASDAQ:OTLK – Get Free Report) and Revolution Medicines (NASDAQ:RVMD – Get Free Report) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
Analyst Ratings
This is a breakdown of current recommendations for Outlook Therapeutics and Revolution Medicines, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Outlook Therapeutics | 0 | 1 | 7 | 0 | 2.88 |
| Revolution Medicines | 0 | 0 | 9 | 1 | 3.10 |
Outlook Therapeutics currently has a consensus target price of $46.43, indicating a potential upside of 433.62%. Revolution Medicines has a consensus target price of $41.20, indicating a potential upside of 14.22%. Given Outlook Therapeutics’ higher probable upside, research analysts plainly believe Outlook Therapeutics is more favorable than Revolution Medicines.
Insider and Institutional Ownership
11.2% of Outlook Therapeutics shares are held by institutional investors. Comparatively, 94.3% of Revolution Medicines shares are held by institutional investors. 5.3% of Outlook Therapeutics shares are held by insiders. Comparatively, 8.5% of Revolution Medicines shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Outlook Therapeutics and Revolution Medicines’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Outlook Therapeutics | N/A | -3,741.39% | -132.37% |
| Revolution Medicines | N/A | -38.39% | -33.61% |
Earnings & Valuation
This table compares Outlook Therapeutics and Revolution Medicines’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Outlook Therapeutics | N/A | N/A | -$58.98 million | ($4.00) | -2.18 |
| Revolution Medicines | $11.58 million | 512.99 | -$436.37 million | ($3.77) | -9.57 |
Outlook Therapeutics has higher earnings, but lower revenue than Revolution Medicines. Revolution Medicines is trading at a lower price-to-earnings ratio than Outlook Therapeutics, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Outlook Therapeutics has a beta of 0.04, suggesting that its share price is 96% less volatile than the S&P 500. Comparatively, Revolution Medicines has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.
Summary
Revolution Medicines beats Outlook Therapeutics on 10 of the 13 factors compared between the two stocks.
About Outlook Therapeutics
Outlook Therapeutics, Inc., operates as a clinical-stage biopharmaceutical company, focuses on developing and commercializing monoclonal antibodies for various ophthalmic indications. Its lead product candidate is ONS-5010, an ophthalmic formulation of bevacizumab product candidate that is in Phase-III clinical trial for the treatment of wet age-related macular degeneration and other retina diseases. Outlook Therapeutics, Inc. has collaboration and license agreements with BioLexis Pte. Ltd. and Zhejiang Huahai Pharmaceutical Co., Ltd. The company was formerly known as Oncobiologics, Inc. and changed its name to Outlook Therapeutics, Inc. in November 2018. Outlook Therapeutics, Inc. was incorporated in 2010 and is based in Iselin, New Jersey.
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.