Head-To-Head Review: Relay Therapeutics (NASDAQ:RLAY) & OKYO Pharma (NASDAQ:OKYO)

OKYO Pharma (NASDAQ:OKYO) and Relay Therapeutics (NASDAQ:RLAY) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Earnings & Valuation

This table compares OKYO Pharma and Relay Therapeutics’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OKYO Pharma	N/A	N/A	-$13.27 million	N/A	N/A
Relay Therapeutics	$25.55 million	33.82	-$341.97 million	($2.64)	-2.47

OKYO Pharma has higher earnings, but lower revenue than Relay Therapeutics.

Institutional and Insider Ownership

3.0% of OKYO Pharma shares are held by institutional investors. Comparatively, 97.0% of Relay Therapeutics shares are held by institutional investors. 40.5% of OKYO Pharma shares are held by company insiders. Comparatively, 4.3% of Relay Therapeutics shares are held by company 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.

Volatility and Risk

OKYO Pharma has a beta of -0.04, indicating that its stock price is 104% less volatile than the S&P 500. Comparatively, Relay Therapeutics has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.

Profitability

This table compares OKYO Pharma and Relay Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OKYO Pharma	N/A	N/A	N/A
Relay Therapeutics	N/A	-42.55%	-37.36%

Analyst Ratings

This is a breakdown of current recommendations for OKYO Pharma and Relay Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OKYO Pharma	0	0	1	0	3.00
Relay Therapeutics	0	0	7	0	3.00

OKYO Pharma presently has a consensus price target of $7.00, indicating a potential upside of 614.29%. Relay Therapeutics has a consensus price target of $21.67, indicating a potential upside of 232.82%. Given OKYO Pharma’s higher probable upside, research analysts clearly believe OKYO Pharma is more favorable than Relay Therapeutics.

Summary

OKYO Pharma beats Relay Therapeutics on 5 of the 9 factors compared between the two stocks.

About OKYO Pharma

OKYO Pharma Limited, a clinical-stage biopharmaceutical company, engages in developing therapeutics for patients suffering from inflammatory eye diseases and ocular pain in the United Kingdom. Its lead preclinical product candidate is OK-101, which is in Phase II clinical trials for the treatment of dry eye disease. The company is also developing OK-201, a bovine adrenal medulla, lipidated-peptide preclinical analogue candidate for the treatment of neuropathic chronic pain. The company was incorporated in 2007 and is headquartered in London, the United Kingdom.

About Relay Therapeutics

Relay Therapeutics, Inc. operates as a clinical-stage precision medicines company. It engages in transforming the drug discovery process with an initial focus on enhancing small molecule therapeutic discovery in targeted oncology and genetic disease indications. The company's lead product candidates include RLY-4008, an oral small molecule inhibitor of fibroblast growth factor receptor 2 (FGFR2), which is in a first-in-human clinical trial for patients with advanced or metastatic FGFR2-altered solid tumors; RLY-2608, a lead mutant-PI3Ka inhibitor program that targets phosphoinostide 3 kinase alpha; and Migoprotafib (GDC-1971), an oral, small molecule, potent and selective inhibitor of the protein tyrosine phosphatase SHP2 that binds and stabilizes Src homology region 2 domain-containing phosphatase-2 (SHP2) as a monotherapy in patients with advanced or metastatic solid tumors. In addition, it has collaboration and license agreements with D. E. Shaw Research, LLC to research certain biological targets through the use of D. E. Shaw Research computational modeling capabilities focused on analysis of protein motion to develop and commercialize compounds and products directed to such targets; and Genentech, Inc. for the development and commercialization of GDC-1971. The company was formerly known as Allostery, Inc. and changed its name to Relay Therapeutics, Inc. in December 2015. Relay Therapeutics, Inc. was incorporated in 2015 and is headquartered in Cambridge, Massachusetts.