Contrasting Editas Medicine (EDIT) and Organovo (ONVO)
Editas Medicine (NASDAQ: EDIT) and Organovo (NASDAQ:ONVO) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
This table compares Editas Medicine and Organovo’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Editas Medicine and Organovo, as provided 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 downside of 1.06%. Organovo has a consensus price target of $3.94, suggesting a potential upside of 164.26%. Given Organovo’s stronger consensus rating and higher probable upside, analysts clearly believe Organovo is more favorable than Editas Medicine.
Institutional and Insider Ownership
70.1% of Editas Medicine shares are held by institutional investors. Comparatively, 27.2% of Organovo shares are held by institutional investors. 19.4% of Editas Medicine shares are held by insiders. Comparatively, 10.2% of Organovo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Editas Medicine has a beta of 5, suggesting that its share price is 400% more volatile than the S&P 500. Comparatively, Organovo has a beta of 3.06, suggesting that its share price is 206% more volatile than the S&P 500.
Earnings and Valuation
This table compares Editas Medicine and Organovo’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Editas Medicine||$6.05 million||189.99||-$97.18 million||($3.24)||-8.42|
|Organovo||$4.23 million||37.66||-$38.44 million||($0.38)||-3.92|
Organovo has lower revenue, but higher earnings than Editas Medicine. Editas Medicine is trading at a lower price-to-earnings ratio than Organovo, indicating that it is currently the more affordable of the two stocks.
Editas Medicine beats Organovo on 7 of the 13 factors compared between the two stocks.
About Editas Medicine
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).
Organovo Holdings, Inc. is an early commercial-stage company focused on developing and commercializing functional human tissues. The Company focuses on the generation of three-dimensional (3D) human tissues, by utilizing its platform technology to create human tissue constructs in 3D. It is focused on development of products, including 3D human tissues used for the preclinical assessment of drug effects, including applications in predictive toxicology, absorption, distribution, metabolism, excretion (ADME), and drug metabolism and pharmacokinetics (DMPK); customized human tissues as living, dynamic models of human biology or disease, for use in drug discovery and development, and three-dimensional human tissues for clinical applications, such as blood vessels for bypass grafting, nerve grafts for nerve damage repair and functional tissue patches for the repair or replacement of damaged tissues and organs.
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