Prime Medicine (NYSE:PRME – Get Free Report) and Eloxx Pharmaceuticals (NASDAQ:ELOX – Get Free Report) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.
Institutional and Insider Ownership
70.4% of Prime Medicine shares are owned by institutional investors. Comparatively, 2.9% of Eloxx Pharmaceuticals shares are owned by institutional investors. 22.7% of Prime Medicine shares are owned by insiders. Comparatively, 20.2% of Eloxx Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Prime Medicine and Eloxx Pharmaceuticals”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Prime Medicine | $5.98 million | 100.57 | -$198.13 million | ($1.44) | -2.31 |
| Eloxx Pharmaceuticals | N/A | N/A | -$36.06 million | ($9.07) | N/A |
Eloxx Pharmaceuticals has lower revenue, but higher earnings 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.
Analyst Recommendations
This is a breakdown of recent recommendations for Prime Medicine and Eloxx Pharmaceuticals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Prime Medicine | 0 | 3 | 4 | 0 | 2.57 |
| Eloxx Pharmaceuticals | 0 | 0 | 0 | 0 | 0.00 |
Prime Medicine currently has a consensus price target of $7.21, suggesting a potential upside of 116.47%. Given Prime Medicine’s stronger consensus rating and higher possible upside, equities analysts clearly believe Prime Medicine is more favorable than Eloxx Pharmaceuticals.
Profitability
This table compares Prime Medicine and Eloxx Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Prime Medicine | N/A | -107.87% | -74.97% |
| Eloxx Pharmaceuticals | N/A | N/A | N/A |
Volatility and Risk
Prime Medicine has a beta of 2.7, indicating that its share price is 170% more volatile than the S&P 500. Comparatively, Eloxx Pharmaceuticals has a beta of -1720.81, indicating that its share price is 172,181% less volatile than the S&P 500.
Summary
Prime Medicine beats Eloxx Pharmaceuticals on 8 of the 12 factors compared between the two stocks.
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.
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.
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