Analyzing Applied Genetic Technologies (NASDAQ:AGTC) and Editas Medicine (NASDAQ:EDIT)


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Applied Genetic Technologies (NASDAQ:AGTC) and Editas Medicine (NASDAQ:EDIT) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Insider and Institutional Ownership

57.9% of Applied Genetic Technologies shares are held by institutional investors. Comparatively, 87.5% of Editas Medicine shares are held by institutional investors. 7.5% of Applied Genetic Technologies shares are held by company insiders. Comparatively, 0.9% of Editas Medicine shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Applied Genetic Technologies has a beta of 2.33, indicating that its stock price is 133% more volatile than the S&P 500. Comparatively, Editas Medicine has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500.

Valuation and Earnings

This table compares Applied Genetic Technologies and Editas Medicine’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Applied Genetic Technologies $2.45 million 77.48 -$45.89 million ($2.17) -2.05
Editas Medicine $20.53 million 132.56 -$133.75 million ($2.68) -15.07

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

Profitability

This table compares Applied Genetic Technologies and Editas Medicine’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Applied Genetic Technologies N/A -73.06% -53.25%
Editas Medicine -99.62% -26.74% -16.38%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Applied Genetic Technologies and Editas Medicine, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Applied Genetic Technologies 0 0 6 0 3.00
Editas Medicine 3 4 4 0 2.09

Applied Genetic Technologies currently has a consensus target price of $17.58, indicating a potential upside of 295.13%. Editas Medicine has a consensus target price of $50.10, indicating a potential upside of 24.01%. Given Applied Genetic Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Applied Genetic Technologies is more favorable than Editas Medicine.

Summary

Applied Genetic Technologies beats Editas Medicine on 9 of the 14 factors compared between the two stocks.

About Applied Genetic Technologies

Applied Genetic Technologies Corporation, a clinical-stage biotechnology company, develops transformational genetic therapies for patients suffering from rare and debilitating diseases. The company's advanced product candidates consist of three ophthalmology development programs across two targets, including X-linked retinitis pigmentosa, which has completed Phase I/II clinical trials; and achromatopsia that is in Phase I/II clinical trials. It is also developing an optogenetic product candidate for the patients with advanced retinal disease. In addition, the company has initiated one preclinical program in otology; and three preclinical programs in targeting central nervous system disorders, including frontotemporal dementia, amyotrophic lateral sclerosis, and adrenoleukodystrophy. It has collaboration agreements with Synpromics Limited; University of Florida; Bionic Sight, LLC; and Otonomy, Inc. Applied Genetic Technologies Corporation was founded in 1999 and is headquartered in Alachua, Florida.

About Editas Medicine

Editas Medicine, Inc., a clinical stage genome editing company, focuses on developing transformative genomic medicines to treat a range of serious diseases. It develops a proprietary genome editing platform based on CRISPR technology to target genetically addressable diseases and therapeutic areas. The company develops EDIT-101, which is in Phase 1/2 clinical trial for Leber Congenital Amaurosis type 10, a genetic form of vision loss that leads to blindness in childhood. It also develops EDIT-102 for the treatment of Usher Syndrome 2A, which is a form of retinitis pigmentosa that also includes hearing loss; autosomal dominant retinitis pigmentosa 4, a progressive form of retinal degeneration; and EDIT-301 to treat sickle cell disease and beta-thalassemia. In addition, the company is developing gene-edited Natural Killer cell medicines to treat solid tumors; alpha-beta T cells for multiple cancers; and gamma delta T cell therapies to treat cancer, as well as has a early discovery program to develop a therapy to treat a neurological disease. It has a research collaboration with Juno Therapeutics, Inc. to develop engineered T cells for cancer; strategic alliance and option agreement with Allergan Pharmaceuticals International Limited to discover, develop, and commercialize new gene editing medicines for a range of ocular disorders; and research collaboration with Asklepios BioPharmaceutical, Inc. to develop a therapy to treat a neurological disease, as well as research collaboration with AskBio and collaboration with m BlueRock Therapeutics LP. The company was formerly known as Gengine, Inc. and changed its name to Editas Medicine, Inc. in November 2013. Editas Medicine, Inc. was incorporated in 2013 and is headquartered in Cambridge, Massachusetts.

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