Head-To-Head Comparison: Arena Pharmaceuticals (ARNA) & Editas Medicine (EDIT)
Arena Pharmaceuticals (NASDAQ: ARNA) and Editas Medicine (NASDAQ:EDIT) are both small-cap healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.
Insider and Institutional Ownership
72.4% of Arena Pharmaceuticals shares are held by institutional investors. Comparatively, 64.1% of Editas Medicine shares are held by institutional investors. 1.9% of Arena Pharmaceuticals shares are held by company insiders. Comparatively, 19.4% of Editas Medicine shares are held 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.
This table compares Arena Pharmaceuticals and Editas Medicine’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and price targets for Arena Pharmaceuticals and Editas Medicine, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Arena Pharmaceuticals currently has a consensus price target of $41.14, suggesting a potential upside of 5.14%. Editas Medicine has a consensus price target of $32.60, suggesting a potential downside of 6.19%. Given Arena Pharmaceuticals’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Arena Pharmaceuticals is more favorable than Editas Medicine.
Valuation & Earnings
This table compares Arena Pharmaceuticals and Editas Medicine’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Arena Pharmaceuticals||$123.97 million||12.39||-$22.51 million||($0.94)||-41.63|
|Editas Medicine||$6.05 million||260.54||-$97.18 million||($3.24)||-10.73|
Arena Pharmaceuticals has higher revenue and earnings than Editas Medicine. Arena Pharmaceuticals is trading at a lower price-to-earnings ratio than Editas Medicine, indicating that it is currently the more affordable of the two stocks.
Arena Pharmaceuticals beats Editas Medicine on 10 of the 13 factors compared between the two stocks.
Arena Pharmaceuticals Company Profile
Arena Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on developing small molecule drugs across a range of therapeutic areas. The Company has three primary investigational clinical programs: etrasimod (APD334) in Phase II evaluation for ulcerative colitis, APD371 entering Phase II evaluation for the treatment of pain associated with Crohn’s disease, and ralinepag (APD811) in Phase II evaluation for pulmonary arterial hypertension (PAH). The Company’s drug, Lorcaserin, is approved for marketing in the United States and South Korea for the indication of weight management. The Company’s drug candidates in clinical development include APD334 for autoimmune diseases, ralinepag for vascular diseases and APD371 for pain. The Company’s programs under collaboration include nelotanserin for dementia-associated psychosis, temanogrel for thrombotic diseases, and an undisclosed orphan GPCR for central nervous system (CNS) indication(s).
Editas Medicine Company Profile
Editas Medicine, Inc. is a genome editing company. It is engaged in treating patients with genetically defined diseases by correcting their disease-causing genes. It operates through developing and commercializing genome editing technology segment. It is developing a genome editing platform based on clustered, regularly interspaced short palindromic repeats (CRISPR) technology. CRISPR uses a protein-ribonucleic acid (RNA) complex composed of an enzyme, including either CRISPR associated protein 9 (Cas9) or CRISPR from Prevotella and Francisella 1 (Cpf1), bound to a guide RNA molecule designed to recognize a particular deoxyribonucleic acid (DNA) sequence. Its platform consists of four components: nuclease engineering, delivery, control and specificity, and directed editing. Its programs include Eye Diseases, Engineered T Cell Therapies for Immuno-Oncology and additional research programs. It is developing a genome editing therapeutic for Leber Congenital Amaurosis type 10 (LCA10).
Receive News & Ratings for Arena Pharmaceuticals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Arena Pharmaceuticals and related companies with MarketBeat.com's FREE daily email newsletter.