Prime Medicine (NYSE:PRME) & AlloVir (NASDAQ:ALVR) Head to Head Review

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

Analyst Ratings

This is a summary of current recommendations and price targets for AlloVir and Prime Medicine, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AlloVir	0	0	0	0	0.00
Prime Medicine	0	3	4	1	2.75

Prime Medicine has a consensus target price of $8.92, suggesting a potential upside of 60.95%. Given Prime Medicine’s stronger consensus rating and higher probable upside, analysts plainly believe Prime Medicine is more favorable than AlloVir.

Insider and Institutional Ownership

66.1% of AlloVir shares are held by institutional investors. Comparatively, 70.4% of Prime Medicine shares are held by institutional investors. 32.1% of AlloVir shares are held by insiders. Comparatively, 22.7% of Prime Medicine shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares AlloVir and Prime Medicine”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AlloVir	N/A	N/A	-$190.42 million	($20.23)	-0.31
Prime Medicine	$4.96 million	150.28	-$198.13 million	($1.56)	-3.55

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

Profitability

This table compares AlloVir and Prime Medicine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AlloVir	N/A	-71.03%	-61.27%
Prime Medicine	N/A	-107.87%	-74.97%

Risk & Volatility

AlloVir has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Prime Medicine has a beta of 2.38, indicating that its stock price is 138% more volatile than the S&P 500.

Summary

Prime Medicine beats AlloVir on 8 of the 13 factors compared between the two stocks.

About AlloVir

AlloVir, Inc. engages in the research, development and commercialization of off-the-shelf VST therapies to prevent and treat severe viral-associated diseases. It develops novel cell therapies with a focus on restoring natural immunity against life-threatening virus-associated diseases in patients with severely weakened immune systems. The firm’s technology platforms deliver commercially scalable solutions by leveraging off-the-shelf, allogeneic, multi-virus specific T-cells targeting devastating viral pathogens for immunocompromised patients under viral attack. The company was founded by Malcolm K. Brenner, Juan F. Vera, Helen E. Heslop, Cliona M. Rooney, John R. Wilson, and Ann M. Leen in August 2013 and is headquartered in Waltham, MA.

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.