Guardian Pharmacy Services (NYSE:GRDN – Get Free Report) and Relay Therapeutics (NASDAQ:RLAY – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.
Profitability
This table compares Guardian Pharmacy Services and Relay Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Guardian Pharmacy Services | 2.90% | 30.29% | 14.88% |
| Relay Therapeutics | N/A | -42.94% | -38.78% |
Risk and Volatility
Guardian Pharmacy Services has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Relay Therapeutics has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Guardian Pharmacy Services | $1.23 billion | 1.39 | -$87.29 million | $0.63 | 42.75 |
| Relay Therapeutics | $10.01 million | 127.26 | -$337.71 million | ($1.75) | -4.20 |
Guardian Pharmacy Services has higher revenue and earnings than Relay Therapeutics. Relay Therapeutics is trading at a lower price-to-earnings ratio than Guardian Pharmacy Services, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
97.0% of Relay Therapeutics shares are owned by institutional investors. 63.7% of Guardian Pharmacy Services shares are owned by company insiders. Comparatively, 4.9% of Relay Therapeutics shares are owned 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.
Analyst Recommendations
This is a summary of current ratings and price targets for Guardian Pharmacy Services and Relay Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Guardian Pharmacy Services | 0 | 1 | 4 | 0 | 2.80 |
| Relay Therapeutics | 1 | 0 | 5 | 1 | 2.86 |
Guardian Pharmacy Services currently has a consensus price target of $32.00, indicating a potential upside of 18.80%. Relay Therapeutics has a consensus price target of $17.00, indicating a potential upside of 131.29%. Given Relay Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Relay Therapeutics is more favorable than Guardian Pharmacy Services.
Summary
Guardian Pharmacy Services beats Relay Therapeutics on 8 of the 15 factors compared between the two stocks.
About Guardian Pharmacy Services
Guardian Pharmacy Services, Inc., a pharmacy service company, provides a suite of technology-enabled services designed to help residents of long-term health care facilities (LTCFs) in the United States. Its individualized clinical, drug dispensing, and administration capabilities are used to serve the needs of residents in lower acuity LTCFs, such as assisted living facilities and behavioral health facilities and group homes. The company’s Guardian Compass includes dashboards created using data from its data warehouse to help its local pharmacies plan, track, and optimize their business operations; and GuardianShield Programs for LTCFs. The company was founded in 2003 and is based in Atlanta, Georgia.
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.
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