Critical Review: WAVE Life Sciences (WVE) versus Editas Medicine (EDIT)

Editas Medicine (NASDAQ: EDIT) and WAVE Life Sciences (NASDAQ:WVE) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

67.9% of Editas Medicine shares are held by institutional investors. Comparatively, 57.0% of WAVE Life Sciences shares are held by institutional investors. 53.0% of WAVE Life Sciences shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Editas Medicine and WAVE Life Sciences, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Editas Medicine 0 4 3 0 2.43
WAVE Life Sciences 0 0 5 0 3.00

Editas Medicine presently has a consensus target price of $26.33, suggesting a potential upside of 47.69%. WAVE Life Sciences has a consensus target price of $40.00, suggesting a potential upside of 133.24%. Given WAVE Life Sciences’ stronger consensus rating and higher probable upside, analysts clearly believe WAVE Life Sciences is more favorable than Editas Medicine.

Valuation and Earnings

This table compares Editas Medicine and WAVE Life Sciences’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Editas Medicine $5.64 million 129.38 -$114.84 million ($3.19) -5.59
WAVE Life Sciences $2.42 million 196.73 -$79.63 million ($3.35) -5.12

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

Profitability

This table compares Editas Medicine and WAVE Life Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Editas Medicine -2,091.36% -67.75% -38.19%
WAVE Life Sciences -3,375.12% -55.19% -45.21%

Summary

WAVE Life Sciences beats Editas Medicine on 7 of the 12 factors compared between the two stocks.

Editas Medicine Company Profile

Editas Medicine, Inc. is a genome editing company. It is engaged in treating patients with genetically defined diseases by correcting their disease-causing genes. It operates through developing and commercializing genome editing technology segment. It is developing a genome editing platform based on clustered, regularly interspaced short palindromic repeats (CRISPR) technology. CRISPR uses a protein-ribonucleic acid (RNA) complex composed of an enzyme, including either CRISPR associated protein 9 (Cas9) or CRISPR from Prevotella and Francisella 1 (Cpf1), bound to a guide RNA molecule designed to recognize a particular deoxyribonucleic acid (DNA) sequence. Its platform consists of four components: nuclease engineering, delivery, control and specificity, and directed editing. Its programs include Eye Diseases, Engineered T Cell Therapies for Immuno-Oncology and additional research programs. It is developing a genome editing therapeutic for Leber Congenital Amaurosis type 10 (LCA10).

WAVE Life Sciences Company Profile

WAVE Life Sciences Ltd. is a genetic medicines company. The Company, through its synthetic chemistry drug development platform, designs, develops and commercializes a pipeline of nucleic acid therapeutic candidates for genetically defined diseases. The Company is engaged in developing oligonucleotides that target genetic defects to either reduce the expression of disease-promoting proteins or transform the production of dysfunctional mutant proteins into the production of functional proteins. The nucleic acid therapeutics, which the Company is developing are stereopure. A stereopure oligonucleotide includes molecules with atoms arranged in three-dimensional orientations at each linkage. The Company has three programs in Huntington’s disease (HD) and Duchenne Muscular Dystrophy (DMD), and three additional development candidates.

What are top analysts saying about Editas Medicine Inc.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Editas Medicine Inc. and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit