Avidity Biosciences (NASDAQ:RNA) & Repare Therapeutics (NASDAQ:RPTX) Critical Contrast

Repare Therapeutics (NASDAQ:RPTX) and Avidity Biosciences (NASDAQ:RNA) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Risk and Volatility

Repare Therapeutics has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Avidity Biosciences has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Institutional and Insider Ownership

85.1% of Repare Therapeutics shares are held by institutional investors. 11.5% of Repare Therapeutics shares are held by company insiders. Comparatively, 3.8% of Avidity Biosciences shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Repare Therapeutics and Avidity Biosciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repare Therapeutics	0	2	2	0	2.50
Avidity Biosciences	0	0	18	1	3.05

Repare Therapeutics currently has a consensus price target of $4.50, indicating a potential upside of 169.46%. Avidity Biosciences has a consensus price target of $68.32, indicating a potential upside of 67.28%. Given Repare Therapeutics’ higher probable upside, equities research analysts plainly believe Repare Therapeutics is more favorable than Avidity Biosciences.

Earnings & Valuation

This table compares Repare Therapeutics and Avidity Biosciences”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repare Therapeutics	$53.48 million	1.34	-$84.69 million	($2.58)	-0.65
Avidity Biosciences	$10.90 million	546.66	-$322.30 million	($3.56)	-11.47

Repare Therapeutics has higher revenue and earnings than Avidity Biosciences. Avidity Biosciences is trading at a lower price-to-earnings ratio than Repare Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Repare Therapeutics and Avidity Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Repare Therapeutics	N/A	-78.25%	-66.85%
Avidity Biosciences	-4,247.77%	-33.45%	-30.22%

Summary

Repare Therapeutics beats Avidity Biosciences on 8 of the 15 factors compared between the two stocks.

About Repare Therapeutics

Repare Therapeutics Inc., a clinical-stage precision oncology company, engages in the discovery and development of therapeutics by using its synthetic lethality approach in Canada and the United States. It uses its SNIPRx, a proprietary, genome-wide, and CRISPR-enabled platform, to discover, validate, and build a pipeline of SL-based therapeutics that focuses on genomic instability, including DNA damage repair. The company's lead product candidate is Camonsertib (RP-3500), an oral small molecule inhibitor under Phase ½ development for the treatment of solid tumors with specific DNA damage repair-related genomic alterations. It is also developing Lunresertib (RP-6306), a PKMYT1 Inhibitor, which is under Phase 1 clinical trial for tumors with genetic alterations characterized by CCNE1 amplification; RP-1664, an oral PLK4 inhibitor, under Phase 1 clinical trial designed to harness the synthetic lethal relationship with TRIM37 amplification or overexpression in solid tumors; and RP-3467, a polymerase theta adenosinetriphosphatase (ATPase) inhibitor, a SL target associated with BRCA mutations and other genomic alterations. The company has license and collaboration agreement with Hoffmann-La Roche Inc. and F. Hoffmann-La Roche Ltd; Bristol-Myers Squibb Company; New York University; and Ono Pharmaceutical Co., as well as a clinical study and collaboration agreement with Debiopharm to explore the synthetic lethal combination of PKMYT1 and WEE1 inhibition in cancer. Repare Therapeutics Inc. was incorporated in 2016 and is headquartered in Montréal, Canada.

About Avidity Biosciences

Avidity Biosciences, Inc., a biopharmaceutical company, engages in the delivery of RNA therapeutics. It develops antibody oligonucleotide conjugates (AOC) that are designed to treat diseases previously untreatable with RNA therapeutics. The company's lead product candidate AOC 1001 for the treatment of myotonic dystrophy type 1, a rare monogenic muscle disease that is in phase 1/2 clinical trial. Its other products in pipeline include AOC 1044 for the treatment of duchenne muscular dystrophy, which is under phase 1/2 clinical development trial; and AOC 1020 to treat facioscapulohumeral muscular dystrophy that is in phase 1/2 clinical trial. The company is developing products for rare skeletal muscle and rare cardiac diseases. Avidity Biosciences, Inc. was incorporated in 2012 and is headquartered in San Diego, California.