X4 Pharmaceuticals (NASDAQ:XFOR) and Editas Medicine (NASDAQ:EDIT) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Risk & Volatility

X4 Pharmaceuticals has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Editas Medicine has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500.

Valuation and Earnings

This table compares X4 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
X4 Pharmaceuticals N/A N/A -$52.81 million ($4.63) -1.84
Editas Medicine $20.53 million 78.93 -$133.75 million ($2.68) -10.95

X4 Pharmaceuticals has higher earnings, but lower revenue than Editas Medicine. Editas Medicine is trading at a lower price-to-earnings ratio than X4 Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

69.8% of X4 Pharmaceuticals shares are owned by institutional investors. Comparatively, 82.0% of Editas Medicine shares are owned by institutional investors. 3.8% of X4 Pharmaceuticals shares are owned by company insiders. Comparatively, 0.9% of Editas Medicine shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares X4 Pharmaceuticals and Editas Medicine’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
X4 Pharmaceuticals N/A -46.37% -35.21%
Editas Medicine -588.05% -63.21% -33.39%

Analyst Recommendations

This is a summary of recent ratings and price targets for X4 Pharmaceuticals and Editas Medicine, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
X4 Pharmaceuticals 0 0 7 0 3.00
Editas Medicine 0 4 3 0 2.43

X4 Pharmaceuticals currently has a consensus price target of $18.20, indicating a potential upside of 113.11%. Editas Medicine has a consensus price target of $39.20, indicating a potential upside of 33.61%. Given X4 Pharmaceuticals’ stronger consensus rating and higher probable upside, research analysts clearly believe X4 Pharmaceuticals is more favorable than Editas Medicine.

Summary

X4 Pharmaceuticals beats Editas Medicine on 8 of the 13 factors compared between the two stocks.

About X4 Pharmaceuticals

X4 Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of novel therapeutics for the treatment of primary immune-deficiencies and cancer. Its lead drug candidate is mavorixafor (X4P-001), an oral small molecule antagonist of chemokine receptor CXCR4, which is in Phase III clinical trial for the treatment of patients with warts, hypogammaglobulinemia, infections, and myelokathexis syndrome; Phase Ib clinical trial to treat severe congenital neutropenia and Waldenström macroglobulinemia; and Phase IIa clinical trial for the treatment of clear cell renal cell carcinoma. The company is also developing X4P-002 for the treatment of glioblastoma multiforme; and X4P-003 to treat primary immune-deficiencies. It has a license agreement with Abbisko Therapeutics Co., Ltd. to develop, manufacture, and commercialize mavorixafor in combination with checkpoint inhibitors or other agents in oncology indications. The company was formerly known as Arsanis, Inc. and changed its name to X4 Pharmaceuticals, Inc. in March 2019. X4 Pharmaceuticals, Inc. was founded in 2014 and is headquartered in Cambridge, Massachusetts.

About Editas Medicine

Editas Medicine, Inc. operates as a clinical stage genome editing company. The company focuses on developing transformative genomic medicines to treat a range of serious diseases. It develops a proprietary genome editing platform based on CRISPR technology to target genetically addressable diseases and therapeutic areas. The company develops EDIT-101 for Leber Congenital Amaurosis type 10, a genetic form of vision loss that leads to blindness in childhood. It also develops other therapies for eye diseases, such as Usher Syndrome 2A, which is a form of retinitis pigmentosa that also includes hearing loss; Retinitis Pigmentosa, a progressive form of retinal degeneration; and Herpes Simplex Virus 1 that causes lifelong infections leading to ocular and oral disease. In addition, the company develops hematopoietic stem cells for treating sickle cell disease and beta thalassemia. It has a research collaboration with Juno Therapeutics, Inc. to develop engineered T cells for cancer; a strategic alliance and option agreement with Allergan Pharmaceuticals International Limited to discover, develop, and commercialize new gene editing medicines for a range of ocular disorders; and a strategic research collaboration and cross-licensing agreement with BlueRock Therapeutics to combine their respective genome editing and cell therapy technologies to discover, develop, and manufacture engineered cell medicines. The company was formerly known as Gengine, Inc. and changed its name to Editas Medicine, Inc. in November 2013. Editas Medicine, Inc. was founded in 2013 and is headquartered in Cambridge, Massachusetts.

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