Adverum Biotechnologies (NASDAQ:ADVM) and Editas Medicine (NASDAQ:EDIT) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Risk and Volatility
Adverum Biotechnologies has a beta of 3.05, meaning that its stock price is 205% more volatile than the S&P 500. Comparatively, Editas Medicine has a beta of 2.56, meaning that its stock price is 156% more volatile than the S&P 500.
This table compares Adverum Biotechnologies and Editas Medicine’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Adverum Biotechnologies||$1.85 million||123.70||-$56.14 million||($1.29)||-2.82|
|Editas Medicine||$13.73 million||69.47||-$120.32 million||($2.98)||-6.69|
Adverum Biotechnologies has higher earnings, but lower revenue than Editas Medicine. Editas Medicine is trading at a lower price-to-earnings ratio than Adverum Biotechnologies, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Adverum Biotechnologies and Editas Medicine, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Adverum Biotechnologies presently has a consensus price target of $6.88, suggesting a potential upside of 88.87%. Editas Medicine has a consensus price target of $45.29, suggesting a potential upside of 127.00%. Given Editas Medicine’s stronger consensus rating and higher possible upside, analysts clearly believe Editas Medicine is more favorable than Adverum Biotechnologies.
Insider & Institutional Ownership
54.9% of Adverum Biotechnologies shares are held by institutional investors. Comparatively, 69.1% of Editas Medicine shares are held by institutional investors. 5.0% of Adverum Biotechnologies shares are held by company insiders. Comparatively, 5.2% of Editas Medicine shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Adverum Biotechnologies and Editas Medicine’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
About Adverum Biotechnologies
Adverum Biotechnologies, Inc., a clinical-stage gene therapy company, engages in developing gene therapy product candidates that target serious rare and ocular diseases. It leverages its adeno-associated virus (AAV)-based directed evolution platform to develop products. The company's pipeline of product candidates include ADVM-043 to treat alpha-1 antitrypsin deficiency, which is in Phase I/II clinical trial; and ADVM-053 for hereditary angioedema disease, which is in preclinical stage; as well as ADVM-022 and ADVM-032 for wet age-related macular degeneration disease, which are in preclinical stage. It has collaboration agreement with Editas Medicine, Inc. to leverage its proprietary AAV vectors for genome editing technologies to treat up to five inherited retinal diseases; and Regeneron Pharmaceuticals, Inc. for the development of up to eight distinct ocular therapeutic targets, as well as includes AVA-311 for the treatment of juvenile X-Linked Retinoschisis. The company was formerly known as Avalanche Biotechnologies, Inc. and changed its name to Adverum Biotechnologies, Inc. in May 2016. Adverum Biotechnologies, Inc. was founded in 2006 and is headquartered in Menlo Park, California.
About Editas Medicine
Editas Medicine, Inc. operates as a genome editing company. It focuses on treating patients with genetically defined diseases by correcting their disease causing genes. The company develops a proprietary genome editing platform based on CRISPR technology to target genetically defined diseases with an initial focus on debilitating illnesses where there are no approved treatments. It develops EDIT-101 for Leber Congenital Amaurosis type 10, a genetic form of vision loss that leads to blindness in childhood. The company also develops other therapies for eye diseases, such as Herpes Simplex Virus 1 that causes lifelong infections primarily leading to ocular and oral disease; and Usher Syndrome 2A, which is a form of retinitis pigmentosa that also includes hearing loss. In addition, it develops hematopoietic stem cells for treating sickle cell disease and beta thalassemia. Editas Medicine, Inc. has a collaboration and license agreement with Juno Therapeutics, Inc. for the research and development of engineered T cells with chimeric antigen receptors and T cell receptors; and strategic alliance and option agreement with Allergan Pharmaceuticals International Limited for the research and development of medicines for ocular diseases. The company was formerly known as Gengine, Inc. and changed its name to Editas Medicine Inc. in November 2013. Editas Medicine, Inc. was founded in 2013 and is based in Cambridge, Massachusetts.
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