Analyzing Editas Medicine (NASDAQ:EDIT) and CARGO Therapeutics (NASDAQ:CRGX)

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

Institutional and Insider Ownership

71.9% of Editas Medicine shares are owned by institutional investors. Comparatively, 93.2% of CARGO Therapeutics shares are owned by institutional investors. 2.2% of Editas Medicine shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Editas Medicine and CARGO Therapeutics’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Editas Medicine	$78.12 million	5.81	-$153.22 million	($2.05)	-2.71
CARGO Therapeutics	N/A	N/A	-$98.15 million	N/A	N/A

CARGO Therapeutics has lower revenue, but higher earnings than Editas Medicine.

Analyst Ratings

This is a summary of recent ratings and target prices for Editas Medicine and CARGO Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Editas Medicine	0	4	5	0	2.56
CARGO Therapeutics	0	0	4	0	3.00

Editas Medicine currently has a consensus target price of $15.00, indicating a potential upside of 170.27%. CARGO Therapeutics has a consensus target price of $29.67, indicating a potential upside of 55.32%. Given Editas Medicine’s higher possible upside, research analysts plainly believe Editas Medicine is more favorable than CARGO Therapeutics.

Profitability

This table compares Editas Medicine and CARGO 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%
CARGO Therapeutics	N/A	N/A	N/A

Summary

CARGO Therapeutics beats Editas Medicine on 6 of the 10 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 CARGO Therapeutics

CARGO Therapeutics, Inc., a clinical-stage biotechnology company, develops chimeric antigen receptor (CAR) T-cell therapies for cancer patients in the Unites States. The company's lead program is CRG-022, an autologous CD22 CAR T-cell product candidate, which is in phase 2 trails, designed to address resistance mechanisms by targeting CD22, an alternate tumor antigen that is expressed in B-cell malignancies. It also develops CRG-023, a tri-specific CAR T product candidate that targets tumor cells with three B-cell antigen targets. The company was formerly known as Syncopation Life Sciences, Inc. and changed its name to CARGO Therapeutics, Inc. in September 2022. CARGO Therapeutics, Inc. was incorporated in 2019 and is headquartered in San Mateo, California.