Editas Medicine (NASDAQ: EDIT) and CytRx Corporation (NASDAQ:CYTR) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.
This table compares Editas Medicine and CytRx Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Editas Medicine has a beta of 4.84, meaning that its stock price is 384% more volatile than the S&P 500. Comparatively, CytRx Corporation has a beta of 2.31, meaning that its stock price is 131% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Editas Medicine and CytRx Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Editas Medicine presently has a consensus price target of $27.00, suggesting a potential upside of 10.75%. CytRx Corporation has a consensus price target of $21.00, suggesting a potential upside of 950.00%. Given CytRx Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe CytRx Corporation is more favorable than Editas Medicine.
Valuation & Earnings
This table compares Editas Medicine and CytRx Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Editas Medicine||$6.05 million||169.73||-$97.18 million||($3.24)||-7.52|
|CytRx Corporation||$200,000.00||276.40||-$50.76 million||($1.75)||-1.14|
CytRx Corporation has higher revenue, but lower earnings than Editas Medicine. Editas Medicine is trading at a lower price-to-earnings ratio than CytRx Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
67.2% of Editas Medicine shares are held by institutional investors. Comparatively, 47.1% of CytRx Corporation shares are held by institutional investors. 19.4% of Editas Medicine shares are held by company insiders. Comparatively, 5.3% of CytRx Corporation 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.
Editas Medicine beats CytRx Corporation on 7 of the 13 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).
CytRx Corporation Company Profile
CytRx Corporation is a biopharmaceutical research and development company specializing in oncology. The Company is focused on the clinical development of aldoxorubicin, its modified version of the chemotherapeutic agent, doxorubicin. It is engaged in Phase III trials for aldoxorubicin as a therapy for patients with soft tissue sarcoma (STS) whose tumors have progressed after treatment with chemotherapy. It is also involved in evaluating aldoxorubicin in a Phase IIb clinical trial in small cell lung cancer; a Phase II clinical trial in human immunodeficiency virus-related Kaposi’s sarcoma; a Phase II clinical trial in patients with late-stage glioblastoma (brain cancer); a Phase Ib trial in combination with ifosfamide in patients with STS, and a Phase Ib trial in combination with gemcitabine in subjects with metastatic solid tumors. It is engaged in the pre-clinical development for DK049, an anti-cancer drug conjugate that utilizes its Linker Activated Drug Release (LADR) technology.
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