Editas Medicine (NASDAQ:EDIT – Get Free Report) and Outlook Therapeutics (NASDAQ:OTLK – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.
Institutional & Insider Ownership
71.9% of Editas Medicine shares are held by institutional investors. Comparatively, 11.2% of Outlook Therapeutics shares are held by institutional investors. 1.9% of Editas Medicine shares are held by company insiders. Comparatively, 5.3% of Outlook Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and target prices for Editas Medicine and Outlook Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Editas Medicine | 0 | 4 | 5 | 0 | 2.56 |
| Outlook Therapeutics | 0 | 1 | 7 | 0 | 2.88 |
Volatility and Risk
Editas Medicine has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500. Comparatively, Outlook Therapeutics has a beta of 0.04, suggesting that its share price is 96% less volatile than the S&P 500.
Profitability
This table compares Editas Medicine and Outlook Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Editas Medicine | -196.12% | -42.95% | -30.49% |
| Outlook Therapeutics | N/A | -3,741.39% | -132.37% |
Valuation and Earnings
This table compares Editas Medicine and Outlook Therapeutics’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Editas Medicine | $78.12 million | 5.60 | -$153.22 million | ($2.05) | -2.60 |
| Outlook Therapeutics | N/A | N/A | -$58.98 million | ($4.00) | -2.11 |
Outlook Therapeutics has lower revenue, but higher earnings than Editas Medicine. Editas Medicine is trading at a lower price-to-earnings ratio than Outlook Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Outlook Therapeutics beats Editas Medicine on 7 of the 13 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 Outlook Therapeutics
Outlook Therapeutics, Inc., operates as a clinical-stage biopharmaceutical company, focuses on developing and commercializing monoclonal antibodies for various ophthalmic indications. Its lead product candidate is ONS-5010, an ophthalmic formulation of bevacizumab product candidate that is in Phase-III clinical trial for the treatment of wet age-related macular degeneration and other retina diseases. Outlook Therapeutics, Inc. has collaboration and license agreements with BioLexis Pte. Ltd. and Zhejiang Huahai Pharmaceutical Co., Ltd. The company was formerly known as Oncobiologics, Inc. and changed its name to Outlook Therapeutics, Inc. in November 2018. Outlook Therapeutics, Inc. was incorporated in 2010 and is based in Iselin, New Jersey.
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