Editas Medicine (NASDAQ:EDIT) versus Incyte (NASDAQ:INCY) Head-To-Head Contrast

Editas Medicine (NASDAQ:EDIT) and Incyte (NASDAQ:INCY) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Risk & Volatility

Editas Medicine has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, Incyte has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Profitability

This table compares Editas Medicine and Incyte’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Editas Medicine	-157.32%	-196.63%	-38.17%
Incyte	27.71%	29.93%	22.88%

Institutional & Insider Ownership

71.9% of Editas Medicine shares are owned by institutional investors. Comparatively, 97.0% of Incyte shares are owned by institutional investors. 3.1% of Editas Medicine shares are owned by insiders. Comparatively, 16.2% of Incyte shares are owned by 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Editas Medicine and Incyte, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Editas Medicine	1	0	6	0	2.71
Incyte	1	12	11	1	2.48

Editas Medicine presently has a consensus price target of $5.83, suggesting a potential upside of 141.05%. Incyte has a consensus price target of $129.33, suggesting a potential upside of 14.20%. Given Editas Medicine’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Editas Medicine is more favorable than Incyte.

Earnings & Valuation

This table compares Editas Medicine and Incyte”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Editas Medicine	$40.52 million	9.17	-$160.06 million	($0.75)	-3.23
Incyte	$5.14 billion	4.47	$1.29 billion	$7.85	14.43

Incyte has higher revenue and earnings than Editas Medicine. Editas Medicine is trading at a lower price-to-earnings ratio than Incyte, indicating that it is currently the more affordable of the two stocks.

Summary

Incyte beats Editas Medicine on 10 of the 14 factors compared between the two stocks.

About Editas Medicine

Editas Medicine, Inc., a clinical stage genome editing company, focuses on developing transformative genomic medicines to treat a range of serious diseases. It develops a proprietary gene editing platform based on CRISPR technology. The company develops EDIT-101, which is in Phase 1/2 BRILLIANCE trial for Leber Congenital Amaurosis; and reni-cel, a clinical development gene-edited medicine to treat sickle cell disease and transfusion-dependent beta-thalassemia. In addition, the company is developing alpha-beta T cells for solid and liquid tumors; and gamma delta T cell therapies to treat cancer. It has a research collaboration with Juno Therapeutics, Inc. to develop engineered T cells for cancer; strategic alliance and option agreement with Allergan Pharmaceuticals International Limited. The company was formerly known as Gengine, Inc. and changed its name to Editas Medicine, Inc. in November 2013. Editas Medicine, Inc. was incorporated in 2013 and is based in Cambridge, Massachusetts.

About Incyte

Incyte Corporation, a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutics for hematology/oncology, and inflammation and autoimmunity areas in the United States and internationally. The company offers JAKAFI (ruxolitinib) for treatment of intermediate or high-risk myelofibrosis, polycythemia vera, and steroid-refractory acute graft-versus-host disease; MONJUVI (tafasitamab-cxix)/MINJUVI (tafasitamab) for relapsed or refractory diffuse large B-cell lymphoma; PEMAZYRE (pemigatinib), a fibroblast growth factor receptor kinase inhibitor that act as oncogenic drivers in liquid and solid tumor types; ICLUSIG (ponatinib) to treat chronic myeloid leukemia and Philadelphia-chromosome positive acute lymphoblastic leukemia; and ZYNYZ (retifanlimab-dlwr) to treat adults with metastatic or recurrent locally advanced Merkel cell carcinoma, as well as OPZELURA cream for treatment of atopic dermatitis. Its clinical stage products include retifanlimab under Phase 3 clinical trials for squamous cell carcinoma of the anal canal and non-small cell lung cancer; axatilimab, an anti-CSF-1R monoclonal antibody under Phase 2 that is being developed as a therapy for patients with chronic GVHD; INCA033989 to inhibit oncogenesis; INCB160058, which is being developed as a disease-modifying therapeutic; and INCB99280 and INCB99318 for the treatment solid tumors. The company also develops INCB123667, INCA32459, and INCA33890, as well as Ruxolitinib cream, Povorcitinib, and INCA034460. It has collaboration out-license agreements with Novartis and Lilly; in-license agreements with Agenus, Merus, MacroGenics, and Syndax; and collaboration and license agreement with China Medical System Holdings Limited for the development and commercialization of povorcitinib. The company sells its products to specialty, retail, and hospital pharmacies, distributors, and wholesalers. The company was formerly known as Incyte Genomics Inc and changed its name to Incyte Corporation in March 2003. Incyte Corporation was incorporated in 1991 and is headquartered in Wilmington, Delaware.