Financial Comparison: Prime Medicine (PRME) & Its Peers

Prime Medicine (NASDAQ:PRME) is one of 844 publicly-traded companies in the “Biotechnology” industry, but how does it contrast to its rivals? We will compare Prime Medicine to related companies based on the strength of its institutional ownership, dividends, earnings, analyst recommendations, profitability, risk and valuation.

Institutional & Insider Ownership

70.4% of Prime Medicine shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Biotechnology” companies are owned by institutional investors. 16.0% of Prime Medicine shares are owned by insiders. Comparatively, 12.9% of shares of all “Biotechnology” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Prime Medicine and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prime Medicine	1	0	8	1	2.90
Prime Medicine Competitors	9782	15052	45294	1571	2.54

Prime Medicine currently has a consensus target price of $7.47, suggesting a potential upside of 68.10%. As a group, “Biotechnology” companies have a potential upside of 97.71%. Given Prime Medicine’s rivals higher possible upside, analysts plainly believe Prime Medicine has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Prime Medicine and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Prime Medicine	$4.07 million	-$201.14 million	-4.19
Prime Medicine Competitors	$735.22 million	$13.62 million	-10.06

Prime Medicine’s rivals have higher revenue and earnings than Prime Medicine. Prime Medicine is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Prime Medicine and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prime Medicine	-4,613.11%	-188.27%	-59.11%
Prime Medicine Competitors	-9,054.47%	-198.89%	-30.64%

Volatility and Risk

Prime Medicine has a beta of 2.13, indicating that its share price is 113% more volatile than the S&P 500. Comparatively, Prime Medicine’s rivals have a beta of 1.10, indicating that their average share price is 10% more volatile than the S&P 500.

Dividends

Prime Medicine pays an annual dividend of $1.45 per share and has a dividend yield of 32.5%. Prime Medicine pays out -136.4% of its earnings in the form of a dividend. As a group, “Biotechnology” companies pay a dividend yield of 1.5% and pay out 62.4% of their earnings in the form of a dividend. Prime Medicine is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Summary

Prime Medicine beats its rivals on 11 of the 15 factors compared.

About Prime Medicine

We are a biotechnology company committed to delivering a new class of differentiated one-time curative genetic therapies, Prime Editors, to address the widest spectrum of diseases by deploying our Prime Editing technology, which we believe is a versatile, precise, efficient and broad gene editing technology. Genetic mutations implicated in disease are diverse and can range from errors of a single base, known as point mutations, to errors that extend beyond a single base, such as insertions, deletions, duplications, or combinations thereof. We believe the ability to alter the human genome at the foundational level may confer the greatest therapeutic impact on human disease. Gene editing, including platforms such as Prime Editing, is a novel technology that is not yet clinically validated for human therapeutic use. Over the last decade, the field of genetic medicine has evolved tremendously, with groundbreaking advances in gene therapy, cell therapy, RNA therapy, and, more recently, gene editing. These technologies represent dramatic advancements for genetic therapies, but lack the versatility to precisely and efficiently correct the diverse range of mutations or DNA alterations implicated in disease. Prime Medicine was co-founded by a world-renowned leader in the field of gene editing, David Liu, Ph.D. Dr. Liu was joined as co-founder by Andrew Anzalone, M.D., Ph.D., who conceived of and developed Prime Editing technology. Drawn by the promise of Prime Editing’s ability to transform the field of gene editing, we have assembled a diverse team that has grown to more than 150 people as of September 30, 2022. There are no current plans for Dr. Liu to be an officer or director of our company following this offering. He is expected to continue to provide consulting services to us pursuant to a consulting agreement, which has a current term that runs through September 2025 and accommodates a previous commitment with respect to Beam Therapeutics Inc., which could result in or may create the appearance of a conflict of interest. He is also expected to retain his position and affiliation with the Broad Institute, Inc., Howard Hughes Medical Institute and Harvard University. On September 20, 2022, we achieved a major milestone as the United States Patent and Trademark Office, or the USPTO, issued U.S. Patent 11,447,770, or the ‘770 Patent, covering methods of using Prime Editors. The Broad Institute, Inc., or Broad Institute, prepared, filed and prosecuted the ‘770 Patent. While Broad Institute is the owner of the ‘770 Patent, it is exclusively licensed to us under the terms of the license agreement with Broad Institute. The ‘770 Patent is the first issued Prime Editing patent in our licensed patent portfolio and we believe it will be instrumental in protecting our Prime Editing platform and pipeline of gene editing programs. We believe our in-licensed and company-owned Prime Editing technology has transformative potential that could change the course of how disease is treated and overcome the challenges associated with current genetic therapies. We in-license our Prime Editing technology pursuant to a license agreement with Broad Institute. In addition, the license agreement grants us certain rights and licenses under certain patent rights Broad Institute owns or controls, including a license to the ‘770 Patent, which covers Prime Editing technology and expires in 2040. The licenses are limited to the field of prevention or treatment of human disease, and most licenses granted to us under the license agreement are further limited to the prevention or treatment of human disease by editing (including modifying or converting) or targeting DNA ex vivo, in vivo, or through xeno transplantation methods, which we refer to as the Prime Broad Field. We were incorporated under the laws of the State of Delaware in September 2019 under the name Prime Medicine, Inc. Our principal executive offices are located at 21 Erie Street, Cambridge, MA.