Infinity Pharmaceuticals (NASDAQ: INFI) and Intellia Therapeutics (NASDAQ:NTLA) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Earnings and Valuation

This table compares Infinity Pharmaceuticals and Intellia Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Infinity Pharmaceuticals N/A N/A -$55.73 million ($1.40) -1.66
Intellia Therapeutics $22.63 million 49.66 -$45.44 million ($1.34) -23.22

Intellia Therapeutics has higher revenue and earnings than Infinity Pharmaceuticals. Intellia Therapeutics is trading at a lower price-to-earnings ratio than Infinity Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

67.1% of Infinity Pharmaceuticals shares are owned by institutional investors. Comparatively, 47.8% of Intellia Therapeutics shares are owned by institutional investors. 6.8% of Infinity Pharmaceuticals shares are owned by insiders. Comparatively, 12.8% of Intellia Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Infinity Pharmaceuticals and Intellia Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Infinity Pharmaceuticals 0 1 1 0 2.50
Intellia Therapeutics 0 3 4 0 2.57

Intellia Therapeutics has a consensus target price of $29.50, suggesting a potential downside of 5.21%. Given Intellia Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Intellia Therapeutics is more favorable than Infinity Pharmaceuticals.

Profitability

This table compares Infinity Pharmaceuticals and Intellia Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Infinity Pharmaceuticals N/A -88.08% -59.20%
Intellia Therapeutics -204.48% -22.70% -16.17%

Volatility and Risk

Infinity Pharmaceuticals has a beta of 2.63, suggesting that its share price is 163% more volatile than the S&P 500. Comparatively, Intellia Therapeutics has a beta of 2.33, suggesting that its share price is 133% more volatile than the S&P 500.

Summary

Intellia Therapeutics beats Infinity Pharmaceuticals on 9 of the 12 factors compared between the two stocks.

About Infinity Pharmaceuticals

Infinity Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is engaged in the discovery, development and delivery of medicines to treat diseases. The Company develops small molecule drugs that target disease pathways for potential applications in oncology. Its product candidate is duvelisib, also known as IPI-145, is an oral, dual-inhibitor of the delta and gamma isoforms of phosphoinositide-3-kinase (PI3K), for the treatment of hematologic malignancies, or blood cancers. The Company is also developing IPI-549, which is an orally administered, clinical-stage, immuno-oncology product candidate that selectively inhibits the gamma isoform of PI3K. In addition to duvelisib, the Company focuses to generate new product candidates for potential investigation in oncology. The Company also focuses on developing DYNAMO, CONTEMPO, BRAVURA, FRESCO, DYNAMO+R, DUO, SYNCHRONY and Duvelisib + Venetoclax.

About Intellia Therapeutics

Intellia Therapeutics, Inc. is a genome editing company. The Company is focused on developing therapeutics utilizing a biological tool known as CRISPR/Cas9. The CRISPR/Cas9 genome editing system includes two components: the Cas9 protein and the guide RNA sequence. The Cas9 protein acts like a pair of molecular scissors that initiates the natural cellular repair process to knockout, repair or insert a gene. The guide RNA sequence recognizes and directs the Cas9 to a specific target deoxyribonucleic acid (DNA) sequence. The Company’s sentinel in vivo programs focus on the use of Lipid Nanoparticle (LNPs) for delivery of the CRISPR/Cas9 complex to the liver. The Company’s division, eXtellia Therapeutics, is focused on the application of CRISPR/Cas9 genome editing in the fields of immuno-oncology and autoimmune and inflammatory diseases. The Company’s subsidiary is Intellia Securities Corp. As of September 30, 2016, the Company had not generated any revenue.

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