Neumora Therapeutics (NASDAQ:NMRA – 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 profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
Institutional and Insider Ownership
47.7% of Neumora Therapeutics shares are owned by institutional investors. Comparatively, 94.3% of Revolution Medicines shares are owned by institutional investors. 26.4% of Neumora Therapeutics shares are owned by insiders. Comparatively, 8.0% of Revolution Medicines shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Neumora Therapeutics and Revolution Medicines’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Neumora Therapeutics | N/A | -73.63% | -68.97% |
| Revolution Medicines | N/A | -33.67% | -30.08% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Neumora Therapeutics | 0 | 2 | 5 | 0 | 2.71 |
| Revolution Medicines | 0 | 0 | 11 | 1 | 3.08 |
Neumora Therapeutics currently has a consensus target price of $21.67, suggesting a potential upside of 122.68%. Revolution Medicines has a consensus target price of $61.00, suggesting a potential upside of 3.67%. Given Neumora Therapeutics’ higher possible upside, research analysts clearly believe Neumora Therapeutics is more favorable than Revolution Medicines.
Risk and Volatility
Neumora Therapeutics has a beta of 3.92, meaning that its share price is 292% more volatile than the S&P 500. Comparatively, Revolution Medicines has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.
Valuation & Earnings
This table compares Neumora Therapeutics and Revolution Medicines”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Neumora Therapeutics | N/A | N/A | -$235.93 million | ($1.87) | -5.20 |
| Revolution Medicines | $11.58 million | 854.76 | -$436.37 million | ($3.59) | -16.39 |
Neumora Therapeutics has higher earnings, but lower revenue than Revolution Medicines. Revolution Medicines is trading at a lower price-to-earnings ratio than Neumora Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Revolution Medicines beats Neumora Therapeutics on 7 of the 13 factors compared between the two stocks.
About Neumora Therapeutics
Neumora Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in developing therapeutic treatments for brain diseases, neuropsychiatric disorders, and neurodegenerative diseases. The company develops navacaprant (NMRA-140), a novel once-daily oral kappa opioid receptor antagonist, which is in phase 3 clinical trials for the treatment of major depressive disorder. It also develops NMRA-511 that is in phase 1 clinical trials in patients with agitation associated with dementia due to Alzheimer’s disease; and NMRA-266, which is in the phase 1 clinical trial for the treatment of schizophrenia and other neuropsychiatric disorders. In addition, its preclinical phase product includes NMRA-NMDA for the treatment of schizophrenia; NMRA-CK1d, a CK1d inhibitor program for the treatment of amyotrophic lateral sclerosis; NMRA-NLRP3 for the treatment of certain neurodegenerative conditions; and NMRA-GCase for the treatment of Parkinson’s disease. The company was formerly known as RBNC Therapeutics, Inc. and changed its name to Neumora Therapeutics, Inc. in October 2021. Neumora Therapeutics, Inc. was incorporated in 2019 and is headquartered in Watertown, Massachusetts.
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.
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