Financial Review: Editas Medicine (EDIT) vs. Its Peers

Editas Medicine (NASDAQ:EDIT) is one of 844 public companies in the “Biotechnology” industry, but how does it compare to its competitors? We will compare Editas Medicine to related companies based on the strength of its risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Editas Medicine and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Editas Medicine	1	0	6	0	2.71
Editas Medicine Competitors	9782	15047	45279	1571	2.54

Editas Medicine currently has a consensus target price of $5.83, suggesting a potential upside of 126.98%. As a group, “Biotechnology” companies have a potential upside of 99.67%. Given Editas Medicine’s stronger consensus rating and higher probable upside, equities analysts clearly believe Editas Medicine is more favorable than its competitors.

Insider and Institutional Ownership

71.9% of Editas Medicine shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Biotechnology” companies are owned by institutional investors. 3.1% of Editas Medicine shares are owned by company insiders. Comparatively, 12.9% of shares of all “Biotechnology” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Editas Medicine and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Editas Medicine	$40.52 million	-$160.06 million	-3.43
Editas Medicine Competitors	$734.33 million	$13.62 million	-10.01

Editas Medicine’s competitors have higher revenue and earnings than Editas Medicine. Editas Medicine is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Editas Medicine has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, Editas Medicine’s competitors have a beta of 1.11, suggesting that their average share price is 11% more volatile than the S&P 500.

Profitability

This table compares Editas Medicine and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Editas Medicine	-157.32%	-196.63%	-38.17%
Editas Medicine Competitors	-9,054.47%	-198.89%	-30.64%

Summary

Editas Medicine beats its competitors on 7 of the 12 factors compared.

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 gene editing platform based on CRISPR technology. The company develops EDIT-101, which is in Phase 1/2 BRILLIANCE trial for Leber Congenital Amaurosis; and reni-cel, a clinical development gene-edited medicine to treat sickle cell disease and transfusion-dependent beta-thalassemia. In addition, the company is developing alpha-beta T cells for solid and liquid tumors; and gamma delta T cell therapies to treat cancer. 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. 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 based in Cambridge, Massachusetts.