Eloxx Pharmaceuticals (NASDAQ:ELOX) and Prime Medicine (NYSE:PRME) Financial Contrast

Prime Medicine (NYSE:PRME) and Eloxx Pharmaceuticals (NASDAQ:ELOX) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Earnings and Valuation

This table compares Prime Medicine and Eloxx Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prime Medicine	$5.98 million	125.33	-$198.13 million	($1.44)	-2.88
Eloxx Pharmaceuticals	N/A	N/A	-$36.06 million	($9.07)	N/A

Eloxx Pharmaceuticals has lower revenue, but higher earnings than Prime Medicine. Prime Medicine is trading at a lower price-to-earnings ratio than Eloxx Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Prime Medicine has a beta of 2.71, suggesting that its share price is 171% more volatile than the S&P 500. Comparatively, Eloxx Pharmaceuticals has a beta of -1686.44, suggesting that its share price is 168,744% less volatile than the S&P 500.

Profitability

This table compares Prime Medicine and Eloxx Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prime Medicine	N/A	-107.87%	-74.97%
Eloxx Pharmaceuticals	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations and price targets for Prime Medicine and Eloxx Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prime Medicine	0	3	4	0	2.57
Eloxx Pharmaceuticals	0	0	0	0	0.00

Prime Medicine presently has a consensus price target of $7.21, indicating a potential upside of 73.69%. Given Prime Medicine’s stronger consensus rating and higher possible upside, research analysts plainly believe Prime Medicine is more favorable than Eloxx Pharmaceuticals.

Institutional and Insider Ownership

70.4% of Prime Medicine shares are owned by institutional investors. Comparatively, 2.9% of Eloxx Pharmaceuticals shares are owned by institutional investors. 22.7% of Prime Medicine shares are owned by company insiders. Comparatively, 20.2% of Eloxx Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Prime Medicine beats Eloxx Pharmaceuticals on 8 of the 12 factors compared between the two stocks.

About Prime Medicine

Prime Medicine, Inc., a biotechnology company, delivers genetic therapies to address the spectrum of diseases by deploying gene editing technology. The company offers Prime Editors with a Prime Editor protein, comprising a fusion between a Cas protein and a reverse transcriptase enzyme; and a pegRNA, which targets the Prime Editor to a specific genomic location and provides a template for making the desired edit to the target DNA sequence. It has a research collaboration with Cimeio Therapeutics to develop Prime Edited Shielded-Cell & Immunotherapy Pairs for genetic diseases, acute myeloid leukemia, and myelodysplastic syndrome. The company was incorporated in 2019 and is based in Cambridge, Massachusetts.

About Eloxx Pharmaceuticals

Eloxx Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on developing ribosome modulation for the treatment of rare and ultra-rare premature stop codon diseases. Its lead investigational drug product candidate is ELX-02, which is in Phase 2 clinical trial for the treatment of cystic fibrosis and nephropathic cystinosis patients with diagnosed nonsense mutations. The company also develops various preclinical programs for the treatment of alport syndrome, recessive dystrophic epidermolysis bullosa, junctional epidermolysis bullosa, and familial adenomatous polyposis, as well as various earlier discovery stage programs in oncology. Eloxx Pharmaceuticals, Inc. was founded in 2013 and is headquartered in Watertown, Massachusetts.