Arcellx (NASDAQ:ACLX – Get Free Report) and Editas Medicine (NASDAQ:EDIT – Get Free Report) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.
Earnings & Valuation
This table compares Arcellx and Editas Medicine”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arcellx | $155.82 million | 28.95 | -$70.69 million | ($0.71) | -117.49 |
| Editas Medicine | $61.76 million | 2.53 | -$153.22 million | ($2.56) | -0.74 |
Arcellx has higher revenue and earnings than Editas Medicine. Arcellx is trading at a lower price-to-earnings ratio than Editas Medicine, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Arcellx | -25.94% | -8.28% | -5.21% |
| Editas Medicine | -340.96% | -80.13% | -50.99% |
Institutional & Insider Ownership
96.0% of Arcellx shares are owned by institutional investors. Comparatively, 71.9% of Editas Medicine shares are owned by institutional investors. 6.2% of Arcellx shares are owned by insiders. Comparatively, 1.9% of Editas Medicine shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Arcellx has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500. Comparatively, Editas Medicine has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Arcellx and Editas Medicine, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arcellx | 0 | 0 | 13 | 2 | 3.13 |
| Editas Medicine | 1 | 7 | 5 | 0 | 2.31 |
Arcellx currently has a consensus target price of $105.93, indicating a potential upside of 26.98%. Editas Medicine has a consensus target price of $7.67, indicating a potential upside of 305.64%. Given Editas Medicine’s higher possible upside, analysts plainly believe Editas Medicine is more favorable than Arcellx.
Summary
Arcellx beats Editas Medicine on 12 of the 15 factors compared between the two stocks.
About Arcellx
Arcellx, Inc., together with its subsidiary, engages in the development of various immunotherapies for patients with cancer and other incurable diseases in the United States. The company’s lead ddCAR product candidate is anitocabtagene autoleucel, which is in phase 2 clinical trial for the treatment of patients with relapsed or refractory multiple myeloma (rrMM). It also develops ACLX-001, a product candidate in Phase 1 clinical trials targeting BCMA to treat rrMM; and ACLX-002, which is in Phase 1 clinical trials that targets CD123 for treating relapsed or refractory acute myeloid leukemia (AML) and myelodysplastic syndrome (MDS). In addition, the company’s preclinical product includes ACLX-003 for the treatment of AML and MDS. Further, it focuses on the development of product candidates for solid tumor programs. It has a strategic alliance with Kite Pharma, Inc. to co-develop and co-commercialize anitocabtagene autoleucel. The company was formerly known as Encarta Therapeutics, Inc. and changed its name to Arcellx, Inc. in January 2016. Arcellx, Inc. was incorporated in 2014 and is headquartered in Redwood City, California.
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.
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