Comparing Prime Medicine (NYSE:PRME) and Eloxx Pharmaceuticals (NASDAQ:ELOX)

Eloxx Pharmaceuticals (NASDAQ:ELOX) and Prime Medicine (NYSE:PRME) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Eloxx Pharmaceuticals and Prime Medicine, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eloxx Pharmaceuticals	0	0	0	0	0.00
Prime Medicine	0	3	4	0	2.57

Prime Medicine has a consensus target price of $7.21, suggesting a potential upside of 68.42%. Given Prime Medicine’s stronger consensus rating and higher probable upside, analysts clearly believe Prime Medicine is more favorable than Eloxx Pharmaceuticals.

Risk and Volatility

Eloxx Pharmaceuticals has a beta of -1686.44, meaning that its share price is 168,744% less volatile than the S&P 500. Comparatively, Prime Medicine has a beta of 2.71, meaning that its share price is 171% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eloxx Pharmaceuticals	N/A	N/A	N/A
Prime Medicine	N/A	-107.87%	-74.97%

Earnings & Valuation

This table compares Eloxx Pharmaceuticals and Prime Medicine”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eloxx Pharmaceuticals	N/A	N/A	-$36.06 million	($9.07)	N/A
Prime Medicine	$5.98 million	129.26	-$198.13 million	($1.44)	-2.97

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

Insider and Institutional Ownership

2.9% of Eloxx Pharmaceuticals shares are owned by institutional investors. Comparatively, 70.4% of Prime Medicine shares are owned by institutional investors. 20.2% of Eloxx Pharmaceuticals shares are owned by insiders. Comparatively, 22.7% of Prime Medicine shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Prime Medicine beats Eloxx Pharmaceuticals on 8 of the 12 factors compared between the two stocks.

About Eloxx Pharmaceuticals

Eloxx Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on developing ribosome modulation for the treatment of rare and ultra-rare premature stop codon diseases. Its lead investigational drug product candidate is ELX-02, which is in Phase 2 clinical trial for the treatment of cystic fibrosis and nephropathic cystinosis patients with diagnosed nonsense mutations. The company also develops various preclinical programs for the treatment of alport syndrome, recessive dystrophic epidermolysis bullosa, junctional epidermolysis bullosa, and familial adenomatous polyposis, as well as various earlier discovery stage programs in oncology. Eloxx Pharmaceuticals, Inc. was founded in 2013 and is headquartered in Watertown, Massachusetts.

About Prime Medicine

Prime Medicine, Inc., a biotechnology company, delivers genetic therapies to address the spectrum of diseases by deploying gene editing technology. The company offers Prime Editors with a Prime Editor protein, comprising a fusion between a Cas protein and a reverse transcriptase enzyme; and a pegRNA, which targets the Prime Editor to a specific genomic location and provides a template for making the desired edit to the target DNA sequence. It has a research collaboration with Cimeio Therapeutics to develop Prime Edited Shielded-Cell & Immunotherapy Pairs for genetic diseases, acute myeloid leukemia, and myelodysplastic syndrome. The company was incorporated in 2019 and is based in Cambridge, Massachusetts.