Rain Oncology (NASDAQ:RAIN – Get Rating) and AstraZeneca (NASDAQ:AZN – Get Rating) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.
Risk and Volatility
Rain Oncology has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500. Comparatively, AstraZeneca has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.
Profitability
This table compares Rain Oncology and AstraZeneca’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rain Oncology | N/A | -74.39% | -64.69% |
| AstraZeneca | 7.42% | 28.63% | 10.68% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rain Oncology | N/A | N/A | -$75.72 million | ($2.70) | -2.75 |
| AstraZeneca | $44.35 billion | 5.04 | $3.29 billion | $1.07 | 67.46 |
AstraZeneca has higher revenue and earnings than Rain Oncology. Rain Oncology is trading at a lower price-to-earnings ratio than AstraZeneca, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
82.9% of Rain Oncology shares are owned by institutional investors. Comparatively, 16.4% of AstraZeneca shares are owned by institutional investors. 21.9% of Rain Oncology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations for Rain Oncology and AstraZeneca, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rain Oncology | 0 | 0 | 9 | 0 | 3.00 |
| AstraZeneca | 1 | 3 | 4 | 0 | 2.38 |
Rain Oncology presently has a consensus target price of $16.44, suggesting a potential upside of 121.32%. AstraZeneca has a consensus target price of $126.00, suggesting a potential upside of 74.56%. Given Rain Oncology’s stronger consensus rating and higher probable upside, equities analysts clearly believe Rain Oncology is more favorable than AstraZeneca.
Summary
AstraZeneca beats Rain Oncology on 8 of the 13 factors compared between the two stocks.
About Rain Oncology
Rain Therapeutics Inc., a clinical-stage precision oncology company, engages in developing therapies that target oncogenic drivers in the United States. Its lead product candidate is milademetan, a small molecule oral inhibitor of mouse double minute 2, which is oncogenic in various cancers. The company is also developing milademetan which is in Phase 3 clinical trial for liposarcoma, Phase II clinical trial for solid tumors, and Phase II clinical trial for intimal sarcoma, as well as RAD52 which is in preclinical trials for tumors, including breast, ovarian, pancreatic, prostate, and other cancers. Rain Therapeutics Inc. was incorporated in 2017 and is headquartered in Newark, California.
About AstraZeneca
AstraZeneca Plc is a holding company, which engages in the research, development, manufacture, and commercialization of prescription medicines. The company was founded on June 17, 1992 and is headquartered in Cambridge, the United Kingdom.
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