Financial Contrast: Revolution Medicines (NASDAQ:RVMD) versus Checkmate Pharmaceuticals (NASDAQ:CMPI)

Revolution Medicines (NASDAQ:RVMD) and Checkmate Pharmaceuticals (NASDAQ:CMPI) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Earnings and Valuation

This table compares Revolution Medicines and Checkmate Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Revolution Medicines $42.98 million 49.50 -$108.16 million ($2.37) -12.18
Checkmate Pharmaceuticals N/A N/A -$36.91 million N/A N/A

Checkmate Pharmaceuticals has lower revenue, but higher earnings than Revolution Medicines.

Insider & Institutional Ownership

95.5% of Revolution Medicines shares are held by institutional investors. Comparatively, 75.5% of Checkmate Pharmaceuticals shares are held by institutional investors. 22.6% of Revolution Medicines shares are held by insiders. Comparatively, 6.3% of Checkmate Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Revolution Medicines and Checkmate Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Revolution Medicines -587.91% -26.76% -23.35%
Checkmate Pharmaceuticals N/A -56.99% -53.17%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Revolution Medicines and Checkmate Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Revolution Medicines 0 2 3 0 2.60
Checkmate Pharmaceuticals 0 0 3 0 3.00

Revolution Medicines presently has a consensus price target of $35.83, indicating a potential upside of 24.12%. Checkmate Pharmaceuticals has a consensus price target of $18.33, indicating a potential upside of 390.20%. Given Checkmate Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Checkmate Pharmaceuticals is more favorable than Revolution Medicines.

Risk & Volatility

Revolution Medicines has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500. Comparatively, Checkmate Pharmaceuticals has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

Summary

Revolution Medicines beats Checkmate Pharmaceuticals on 6 of the 10 factors compared between the two stocks.

Revolution Medicines Company Profile

Revolution Medicines, Inc., a clinical-stage precision oncology company, focuses on developing therapies to inhibit frontier targets in RAS-addicted cancers. The company is developing RMC-4630, an inhibitor of SHP2, which is in Phase 1/2 clinical trial for the treatment of solid tumors, such as gynecologic and colorectal cancer tumors. It also develops RMC-5845, a selective inhibitor of SOS1, a protein that converts RAS (OFF) to RAS (ON) in cells; and RMC-5552, a hyperactivated selective inhibitor of mTORC1 signaling in tumors. In addition, the company is developing RMC-6291, a mutant-selective inhibitor of KRASG12C(ON) and NRASG12C(ON); and RMC-6236, a RAS-selective inhibitor of multiple RAS(ON) variants. Further, it develops RAS(ON) Inhibitors targeting KRASG13C(ON) and KRASG12D(ON). Revolution Medicines, Inc. has a collaboration agreement with Sanofi for the research and development of SHP2 inhibitors, including RMC-4630. The company was incorporated in 2014 and is headquartered in Redwood City, California.

Checkmate Pharmaceuticals Company Profile

Checkmate Pharmaceuticals, Inc., a clinical-stage biotechnology company, focuses on developing and commercializing novel therapeutics for the treatment of cancer. It develops CMP-001, which is in phase II clinical trial in combination with pembrolizumab to treat patients with PD-1 refractory melanoma; combination with nivolumab to treat patients with PD-1 naïve neoadjuvant melanoma; and treatment in patients with PD-1 refractory melanoma. The company has strategic alliances with Merck KGaA and Pfizer. Checkmate Pharmaceuticals, Inc. was incorporated in 2015 and is headquartered in Cambridge, Massachusetts.

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