Arrowhead Pharmaceuticals (NASDAQ:ARWR – Get Free Report) and CRISPR Therapeutics (NASDAQ:CRSP – Get Free Report) are both mid-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.
Valuation and Earnings
This table compares Arrowhead Pharmaceuticals and CRISPR Therapeutics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arrowhead Pharmaceuticals | $829.45 million | 10.17 | -$1.63 million | ($2.25) | -26.62 |
| CRISPR Therapeutics | $3.51 million | 1,416.47 | -$581.60 million | ($4.76) | -10.80 |
Arrowhead Pharmaceuticals has higher revenue and earnings than CRISPR Therapeutics. Arrowhead Pharmaceuticals is trading at a lower price-to-earnings ratio than CRISPR Therapeutics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Arrowhead Pharmaceuticals and CRISPR Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arrowhead Pharmaceuticals | -47.79% | -60.06% | -17.37% |
| CRISPR Therapeutics | -3,368.72% | -24.39% | -18.25% |
Volatility & Risk
Arrowhead Pharmaceuticals has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, CRISPR Therapeutics has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Arrowhead Pharmaceuticals and CRISPR Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arrowhead Pharmaceuticals | 1 | 3 | 10 | 1 | 2.73 |
| CRISPR Therapeutics | 1 | 7 | 9 | 2 | 2.63 |
Arrowhead Pharmaceuticals presently has a consensus target price of $99.07, indicating a potential upside of 65.39%. CRISPR Therapeutics has a consensus target price of $65.75, indicating a potential upside of 27.87%. Given Arrowhead Pharmaceuticals’ stronger consensus rating and higher possible upside, research analysts clearly believe Arrowhead Pharmaceuticals is more favorable than CRISPR Therapeutics.
Insider & Institutional Ownership
62.6% of Arrowhead Pharmaceuticals shares are held by institutional investors. Comparatively, 69.2% of CRISPR Therapeutics shares are held by institutional investors. 3.6% of Arrowhead Pharmaceuticals shares are held by insiders. Comparatively, 5.2% of CRISPR Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Arrowhead Pharmaceuticals beats CRISPR Therapeutics on 8 of the 15 factors compared between the two stocks.
About Arrowhead Pharmaceuticals
Arrowhead Pharmaceuticals, Inc. develops medicines for the treatment of intractable diseases in the United States. The company's products in pipeline includes Plozasiran, which is in Phase 2b and one Phase 3 clinical trial to treat hypertriglyceridemia, mixed dyslipidemia, and chylomicronemia syndrome; Zodasiran that is in Phase 2b clinical trial for the treatment of dyslipidemia and hypertriglyceridemia; ARO-PNPLA3, which is in Phase 1 clinical trial to treat patients with non-alcoholic steatohepatitis; ARO-RAGE that is in Phase 1/2a clinical trial to treat inflammatory pulmonary conditions; and ARO-MUC5AC, which is in Phase 1/2a clinical trial to treat muco-obstructive pulmonary diseases. It also develops ARO-MMP7 that is in Phase 1/2a clinical trial for treatment of idiopathic pulmonary fibrosis; ARO-DUX4 for the treatment of facioscapulohumeral muscular dystrophy; ARO-SOD1 for the potential treatment of amyotrophic lateral sclerosis; and ARO-C3, which is in Phase 1/2a clinical trial for the treatment of patients with various complement mediated or complement associated renal diseases. In addition, the company is involved in the development of JNJ-3989, which is in Phase 2 clinical trial to treat chronic hepatitis B virus infection; Olpasiran that is in Phase 3 clinical trial to reduce the production of apolipoprotein A; GSK-4532990 that is in phase 2 clinical trial to treat liver diseases; HZN-457, which is in phase 1 clinical trial to treat uncontrolled gout; and Fazirsiran that is in Phase 3 clinical trial for the treatment for liver disease associated with alpha-1 antitrypsin deficiency. Arrowhead Pharmaceuticals, Inc. has license and research collaboration agreements with Janssen Pharmaceuticals, Inc.; Takeda Pharmaceutical Company Limited; Horizon Therapeutics Ireland DAC; Amgen Inc.; and Glaxosmithkline Intellectual Property (No. 3) Limited. The company was founded in 2003 and is headquartered in Pasadena, California.
About CRISPR Therapeutics
CRISPR Therapeutics is a gene-editing company focused on developing transformative gene-based medicines for serious diseases using its proprietary CRISPR/Cas9 platform. CRISPR/Cas9 is a revolutionary gene-editing technology that allows for precise, directed changes to genomic DNA. CRISPR Therapeutics has established a portfolio of therapeutic programs across a broad range of disease areas including hemoglobinopathies, oncology, regenerative medicine and rare diseases. To accelerate and expand its efforts, CRISPR Therapeutics has established strategic collaborations with companies including Bayer, Vertex Pharmaceuticals and ViaCyte, Inc. CRISPR Therapeutics AG is headquartered in Zug, Switzerland, with its wholly-owned U.S. subsidiary, CRISPR Therapeutics, Inc., and R&D operations based in Cambridge, Massachusetts, and business offices in San Francisco, California and London, United Kingdom. For more information, please visit www.crisprtx.com.
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