Revance Therapeutics (NASDAQ:RVNC) and Array Biopharma (NASDAQ:ARRY) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.
Institutional and Insider Ownership
94.9% of Revance Therapeutics shares are owned by institutional investors. 5.2% of Revance Therapeutics shares are owned by company insiders. Comparatively, 2.1% of Array Biopharma shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Revance Therapeutics and Array Biopharma’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Revance Therapeutics||$3.73 million||144.77||-$142.57 million||($3.94)||-3.11|
|Array Biopharma||$173.77 million||61.44||-$147.34 million||($0.73)||-65.55|
Revance Therapeutics has higher earnings, but lower revenue than Array Biopharma. Array Biopharma is trading at a lower price-to-earnings ratio than Revance Therapeutics, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for Revance Therapeutics and Array Biopharma, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Revance Therapeutics presently has a consensus price target of $34.73, suggesting a potential upside of 183.04%. Array Biopharma has a consensus price target of $38.47, suggesting a potential downside of 19.60%. Given Revance Therapeutics’ stronger consensus rating and higher probable upside, research analysts clearly believe Revance Therapeutics is more favorable than Array Biopharma.
Volatility and Risk
Revance Therapeutics has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Array Biopharma has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.
This table compares Revance Therapeutics and Array Biopharma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Revance Therapeutics beats Array Biopharma on 8 of the 14 factors compared between the two stocks.
About Revance Therapeutics
Revance Therapeutics, Inc., a clinical-stage biotechnology company, engages in the development, manufacture, and commercialization of novel neuromodulators for various aesthetic and therapeutic indications. The company's lead drug candidate is DaxibotulinumtoxinA for injection (DAXI), which is in phase III clinical trials to treat glabellar (frown) lines and cervical dystonia; and in phase II clinical trials for the treatment of plantar fasciitis, adult upper limb spasticity, and chronic migraine. It is also developing DAXI for forehead lines and lateral canthal lines; DaxibotulinumtoxinA Topical for therapeutic and aesthetic applications; and OnabotulinumtoxinA, a biosimilar to BOTOX. Revance Therapeutics, Inc. has a collaboration agreement with Mylan Ireland Limited for the development, manufacture, and commercialization of a biosimilar to BOTOX. The company was formerly known as Essentia Biosystems, Inc. and changed its name to Revance Therapeutics, Inc. in April 2005. Revance Therapeutics, Inc. was founded in 1999 and is headquartered in Newark, California.
About Array Biopharma
Array BioPharma Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of small molecule drugs to treat patients with cancer and other diseases in North America, Europe, and the Asia Pacific. It provides BRAFTOVITM (encorafenib) capsules in combination with MEKTOVI (binimetinib) tablets for the treatment of patients with unresectable or metastatic melanoma with a BRAF mutation. The company's lead clinical programs include encorafenib and binimetinib that are investigated in approximately 30 clinical trials for various solid tumor indications, including a Phase III trial in BRAF-mutant colorectal cancer. Its product pipeline also includes ipatasertib, an AKT inhibitor that is in Phase III trial to treat prostate or breast cancers; selumetinib, a MEK inhibitor for cancer; larotrectinib, a PanTrk inhibitor that is in a Phase II/registration clinical trial for cancer; tucatinib, a HER2 inhibitor for breast cancer, which is in Phase II/registration trial; and ARRY-797 that is in Phase III clinical trial for Lamin A/C-related dilated cardiomyopathy. In addition, the company is developing varlitinib/ASLAN001, a Pan-HER2 inhibitor for gastric cancer; ARRY-382, a CSF1R inhibitor that is in Phase II clinical trial to treat cancer; motolimod/VTX-2337, a Toll-like receptor that is in Phase II clinical trial for cancer; and prexasertib/LY2606368, a CHK-1 inhibitor, which is in multiple Phase I or II clinical trials for cancer. Further, its drug candidates in Phase I clinical trials include GDC-0575, a CHK-1 inhibitor for cancer; LOXO-292, a RET inhibitor to treat cancer; and LOXO-195, a Trk inhibitor for cancer. Additionally, its drug candidates include Ganovo/danoprevir, a protease inhibitor for hepatitis C virus. The company was founded in 1998 and is headquartered in Boulder, Colorado.
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