Avrobio (NASDAQ:AVRO) and Editas Medicine (NASDAQ:EDIT) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.
Volatility & Risk
Avrobio has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, Editas Medicine has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500.
Insider and Institutional Ownership
82.3% of Avrobio shares are held by institutional investors. Comparatively, 82.0% of Editas Medicine shares are held by institutional investors. 4.8% of Avrobio shares are held by company insiders. Comparatively, 0.9% of Editas Medicine shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Avrobio and Editas Medicine’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Editas Medicine||$20.53 million||78.93||-$133.75 million||($2.68)||-10.95|
Avrobio has higher earnings, but lower revenue than Editas Medicine. Editas Medicine is trading at a lower price-to-earnings ratio than Avrobio, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for Avrobio and Editas Medicine, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Avrobio presently has a consensus target price of $33.60, indicating a potential upside of 91.34%. Editas Medicine has a consensus target price of $39.20, indicating a potential upside of 33.61%. Given Avrobio’s stronger consensus rating and higher possible upside, research analysts plainly believe Avrobio is more favorable than Editas Medicine.
This table compares Avrobio and Editas Medicine’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Avrobio beats Editas Medicine on 10 of the 13 factors compared between the two stocks.
AVROBIO, Inc., a clinical-stage gene therapy company, focuses on developing ex vivo lentiviral-based gene therapies to treat rare diseases following a single dose in the United States. Its gene therapies employ hematopoietic stem cells that are collected from patients and modified with a lentiviral vector to insert functional copies of the gene, which is defective in the target disease. The company's lead product candidate is AVR-RD-01, which is in ongoing Phase II clinical trial and investigator-sponsored Phase I clinical trial for the treatment of Fabry disease. It is also developing AVR-RD-02 that has completed pre-clinical trials for the treatment of type 1 Gaucher disease; AVR-RD-03, which is in preclinical development to treat Pompe disease; and AVR-RD-04 that has completed pre-clinical studies for treating cystinosis. The company was founded in 2015 and is headquartered in Cambridge, Massachusetts.
About Editas Medicine
Editas Medicine, Inc. operates as a clinical stage genome editing company. The company focuses on developing transformative genomic medicines to treat a range of serious diseases. It develops a proprietary genome editing platform based on CRISPR technology to target genetically addressable diseases and therapeutic areas. The company develops EDIT-101 for Leber Congenital Amaurosis type 10, a genetic form of vision loss that leads to blindness in childhood. It also develops other therapies for eye diseases, such as Usher Syndrome 2A, which is a form of retinitis pigmentosa that also includes hearing loss; Retinitis Pigmentosa, a progressive form of retinal degeneration; and Herpes Simplex Virus 1 that causes lifelong infections leading to ocular and oral disease. In addition, the company develops hematopoietic stem cells for treating sickle cell disease and beta thalassemia. It has a research collaboration with Juno Therapeutics, Inc. to develop engineered T cells for cancer; a strategic alliance and option agreement with Allergan Pharmaceuticals International Limited to discover, develop, and commercialize new gene editing medicines for a range of ocular disorders; and a strategic research collaboration and cross-licensing agreement with BlueRock Therapeutics to combine their respective genome editing and cell therapy technologies to discover, develop, and manufacture engineered cell medicines. The company was formerly known as Gengine, Inc. and changed its name to Editas Medicine, Inc. in November 2013. Editas Medicine, Inc. was founded in 2013 and is headquartered in Cambridge, Massachusetts.
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