Analyzing Prime Medicine (NYSE:PRME) and Century Therapeutics (NASDAQ:IPSC)

Prime Medicine (NYSE:PRME) and Century Therapeutics (NASDAQ:IPSC) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Risk and Volatility

Prime Medicine has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500. Comparatively, Century Therapeutics has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.

Insider & Institutional Ownership

70.4% of Prime Medicine shares are held by institutional investors. Comparatively, 50.2% of Century Therapeutics shares are held by institutional investors. 23.5% of Prime Medicine shares are held by company insiders. Comparatively, 6.8% of Century Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Prime Medicine and Century Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prime Medicine	N/A	-107.87%	-74.97%
Century Therapeutics	-4,837.73%	-61.66%	-31.78%

Analyst Ratings

This is a summary of current ratings and recommmendations for Prime Medicine and Century Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prime Medicine	0	1	8	0	2.89
Century Therapeutics	0	0	5	0	3.00

Prime Medicine presently has a consensus price target of $13.25, indicating a potential upside of 296.71%. Century Therapeutics has a consensus price target of $11.60, indicating a potential upside of 759.26%. Given Century Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Century Therapeutics is more favorable than Prime Medicine.

Valuation & Earnings

This table compares Prime Medicine and Century Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prime Medicine	$800,000.00	547.60	-$198.13 million	($2.05)	-1.63
Century Therapeutics	$2.23 million	51.48	-$136.67 million	($1.85)	-0.73

Century Therapeutics has higher revenue and earnings than Prime Medicine. Prime Medicine is trading at a lower price-to-earnings ratio than Century Therapeutics, indicating that it is currently the more affordable of the two stocks.

Summary

Century Therapeutics beats Prime Medicine on 8 of the 14 factors compared between the two stocks.

About Prime Medicine

Prime Medicine, Inc., a biotechnology company, delivers genetic therapies to address the spectrum of diseases by deploying gene editing technology. The company offers Prime Editors with a Prime Editor protein, comprising a fusion between a Cas protein and a reverse transcriptase enzyme; and a pegRNA, which targets the Prime Editor to a specific genomic location and provides a template for making the desired edit to the target DNA sequence. It has a research collaboration with Cimeio Therapeutics to develop Prime Edited Shielded-Cell & Immunotherapy Pairs for genetic diseases, acute myeloid leukemia, and myelodysplastic syndrome. The company was incorporated in 2019 and is based in Cambridge, Massachusetts.

About Century Therapeutics

Century Therapeutics, Inc., a biotechnology company, engages in the development of genetically engineered allogeneic cell therapies for the treatment of solid tumor and hematological malignancies. Its lead product candidate is CNTY-101, an allogeneic, induced pluripotent stem cells (iPSCs)-derived chimeric antigen receptors (CAR)-iNK cell therapy, under Phase 1 trials targeting CD19 for relapsed, refractory B-cell lymphoma. The company is also involved in the development of CNTY-102, a bi-specific CD19 + CD22 CAR-iT product candidate for relapsed, refractory B-cell lymphoma and other B-cell malignancies; and CNTY-107, a Nectin-4 CAR-iT targeted product candidate for Nectin-4 positive solid tumors. In addition, it has a strategic collaboration with Bristol-Myers Squibb Company to develop and commercialize up to four iNK or iT programs, including CNTY-104, a multi-specific collaboration program targeting acute myeloid leukemia; and CNTY-106, a multi-specific collaboration program for multiple myeloma. The company was incorporated in 2018 and is headquartered in Philadelphia, Pennsylvania.