Head-To-Head Analysis: Revolution Medicines (NASDAQ:RVMD) vs. Neumora Therapeutics (NASDAQ:NMRA)

Revolution Medicines (NASDAQ:RVMD) and Neumora Therapeutics (NASDAQ:NMRA) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Institutional & Insider Ownership

94.3% of Revolution Medicines shares are held by institutional investors. Comparatively, 47.7% of Neumora Therapeutics shares are held by institutional investors. 8.0% of Revolution Medicines shares are held by company insiders. Comparatively, 26.4% of Neumora Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revolution Medicines	$742,000.00	13,280.69	-$436.37 million	($3.59)	-16.32
Neumora Therapeutics	N/A	N/A	-$235.93 million	($1.87)	-5.22

Neumora Therapeutics has lower revenue, but higher earnings 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.

Profitability

This table compares Revolution Medicines and Neumora Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Revolution Medicines	N/A	-33.67%	-30.08%
Neumora Therapeutics	N/A	-73.63%	-68.97%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Revolution Medicines and Neumora Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolution Medicines	0	0	11	1	3.08
Neumora Therapeutics	0	2	5	0	2.71

Revolution Medicines currently has a consensus target price of $61.00, suggesting a potential upside of 4.13%. Neumora Therapeutics has a consensus target price of $21.67, suggesting a potential upside of 121.99%. Given Neumora Therapeutics’ higher possible upside, analysts clearly believe Neumora Therapeutics is more favorable than Revolution Medicines.

Volatility & Risk

Revolution Medicines has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Neumora Therapeutics has a beta of 3.92, suggesting that its stock price is 292% more volatile than the S&P 500.

Summary

Revolution Medicines beats Neumora Therapeutics on 7 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 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.