Analyzing Enanta Pharmaceuticals (ENTA) and Editas Medicine (EDIT)

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Enanta Pharmaceuticals and Editas Medicine, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enanta Pharmaceuticals 0 3 1 0 2.25
Editas Medicine 0 4 5 0 2.56

Enanta Pharmaceuticals presently has a consensus price target of $51.25, suggesting a potential downside of 30.20%. Editas Medicine has a consensus price target of $32.60, suggesting a potential downside of 3.24%. Given Editas Medicine’s stronger consensus rating and higher possible upside, analysts plainly believe Editas Medicine is more favorable than Enanta Pharmaceuticals.

Institutional and Insider Ownership

68.0% of Enanta Pharmaceuticals shares are held by institutional investors. Comparatively, 64.5% of Editas Medicine shares are held by institutional investors. 10.6% of Enanta Pharmaceuticals shares are held by company insiders. Comparatively, 19.4% of Editas Medicine shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Enanta Pharmaceuticals and Editas Medicine’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enanta Pharmaceuticals 26.35% 13.33% 12.50%
Editas Medicine -1,127.03% -70.19% -37.08%

Earnings and Valuation

This table compares Enanta Pharmaceuticals and Editas Medicine’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enanta Pharmaceuticals $102.81 million 13.68 $17.71 million $1.73 42.44
Editas Medicine $6.05 million 252.59 -$97.18 million ($3.24) -10.40

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

Summary

Enanta Pharmaceuticals beats Editas Medicine on 8 of the 13 factors compared between the two stocks.

About Enanta Pharmaceuticals

Enanta Pharmaceuticals, Inc. is a research and development-focused biotechnology company. The Company uses chemistry-driven approach and drug discovery solutions to create small molecule drugs for the treatment of viral infections and liver diseases. Its research and development programs are focused on three disease targets: non-alcoholic steatohepatitis (NASH)/ primary biliary cholangitis (PBC), respiratory syncytial virus (RSV) and hepatitis B virus (HBV). It has discovered novel protease inhibitors that are members of the direct-acting-antiviral (DAA) inhibitor classes designed for use against the hepatitis C virus (HCV). These protease inhibitors, developed through its collaboration with AbbVie Inc. (AbbVie), include paritaprevir and glecaprevir (ABT-493). Its product candidates also include EDP-305, which is a farnesoid X receptor (FXR) agonist product candidate for NASH and PBC, and EDP-938, which is a clinical candidate for RSV.

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).

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