Precision BioSciences (NASDAQ:DTIL) and Orchard Therapeutics (NASDAQ:ORTX) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Risk & Volatility

Precision BioSciences has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Orchard Therapeutics has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Valuation and Earnings

This table compares Precision BioSciences and Orchard Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Precision BioSciences $22.24 million 16.05 -$92.88 million ($1.91) -3.57
Orchard Therapeutics $2.51 million 175.15 -$163.42 million ($1.75) -2.58

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Precision BioSciences and Orchard Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Precision BioSciences 0 1 4 0 2.80
Orchard Therapeutics 0 0 3 0 3.00

Precision BioSciences presently has a consensus price target of $19.33, indicating a potential upside of 183.48%. Orchard Therapeutics has a consensus price target of $20.33, indicating a potential upside of 349.85%. Given Orchard Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Orchard Therapeutics is more favorable than Precision BioSciences.

Institutional and Insider Ownership

48.3% of Precision BioSciences shares are owned by institutional investors. Comparatively, 70.0% of Orchard Therapeutics shares are owned by institutional investors. 14.3% of Precision BioSciences shares are owned by insiders. Comparatively, 4.2% of Orchard Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Precision BioSciences and Orchard Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Precision BioSciences -519.93% -81.82% -45.28%
Orchard Therapeutics N/A -63.77% -48.60%

Summary

Orchard Therapeutics beats Precision BioSciences on 8 of the 14 factors compared between the two stocks.

Precision BioSciences Company Profile

Precision BioSciences, Inc. operates as a genome editing company and develops therapeutic products in the United States. It operates through two segments, Therapeutic and Food. The company offers ARCUS, a genome editing platform to cure cancers and genetic disorders. The Therapeutic segment develops allogeneic CAR T immunotherapy that recognizes and kills cancer cells; and engages in the in vivo gene correction activities. This segment develops PBCAR0191, is an allogeneic CAR T cell therapy targeting the tumor target CD19 for acute lymphoblastic leukemia and non-hodgkin lymphoma; and CD20, BCMA, and CLL-1, CAR T cell therapies targeting the tumor antigens. The Food segment develops food and nutrition products; and pre-breeding materials, a gene edited crop intermediate that could be integrated into breeding program and use in producing new crop varieties. The company has development and commercial license agreement with Shire Plc for research and development of individual T cell modifications; collaboration agreement with Gilead Sciences, Inc. to co-develop a product candidate to cure chronic Hepatitis B infection. Precision BioSciences, Inc. was founded in 2006 and is headquartered in Durham, North Carolina.

Orchard Therapeutics Company Profile

Orchard Therapeutics plc, integrated biopharmaceutical company, develops gene therapies for serious and life-threatening rare diseases. The company's gene therapy approach seeks to transform a patient's hematopoietic stem cells into a gene-modified drug product to treat the patient's disease through a single administration. Its commercial stage products include Strimvelis, a gammaretroviral-based product for the treatment of adenosine deaminase-severe combined immunodeficiency (ADA-SCID). The company's clinical development products comprise OTL-101 for the treatment of ADA-SCID; OTL-200 to treat metachromatic leukodystrophy; OTL-103 for the treatment of Wiskott-Aldrich syndrome; OTL-102 for X-linked chronic granulomatous disease; and OTL-300 for transfusion-dependent beta-thalassemia. Its preclinical programs include OTL-201 for mucopolysaccharidosis type IIIA and OTL-202 for mucopolysaccharidosis type IIIB. The company was formerly known as Orchard Rx Ltd. Orchard Therapeutics plc was founded in 2015 and is headquartered in London, the United Kingdom.

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