Editas Medicine (NASDAQ:EDIT) and Cortexyme (NASDAQ:CRTX) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.
Institutional and Insider Ownership
87.5% of Editas Medicine shares are held by institutional investors. Comparatively, 55.5% of Cortexyme shares are held by institutional investors. 0.9% of Editas Medicine shares are held by company insiders. Comparatively, 19.8% of Cortexyme 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.
Valuation and Earnings
This table compares Editas Medicine and Cortexyme's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Editas Medicine | $20.53 million | 132.43 | $-133,750,000.00 | ($2.68) | -15.06 |
Cortexyme | N/A | N/A | $-36,980,000.00 | ($1.94) | -18.75 |
Cortexyme has lower revenue, but higher earnings than Editas Medicine. Cortexyme is trading at a lower price-to-earnings ratio than Editas Medicine, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Editas Medicine and Cortexyme's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Editas Medicine | -99.62% | -26.74% | -16.38% |
Cortexyme | N/A | -37.78% | -35.24% |
Volatility & Risk
Editas Medicine has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500. Comparatively, Cortexyme has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Editas Medicine and Cortexyme, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Editas Medicine | 3 | 4 | 3 | 0 | 2.00 |
Cortexyme | 2 | 1 | 4 | 0 | 2.29 |
Editas Medicine presently has a consensus target price of $49.2222, suggesting a potential upside of 21.96%. Cortexyme has a consensus target price of $50.00, suggesting a potential upside of 37.48%. Given Cortexyme's stronger consensus rating and higher possible upside, analysts clearly believe Cortexyme is more favorable than Editas Medicine.
Summary
Cortexyme beats Editas Medicine on 8 of the 13 factors compared between the two stocks.