Comparing Eloxx Pharmaceuticals (NASDAQ:ELOX) & Prime Medicine (NYSE:PRME)

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

Volatility and Risk

Prime Medicine has a beta of 2.71, meaning that its share price is 171% more volatile than the S&P 500. Comparatively, Eloxx Pharmaceuticals has a beta of -1720.35, meaning that its share price is 172,135% less volatile than the S&P 500.

Earnings and Valuation

This table compares Prime Medicine and Eloxx Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prime Medicine	$5.98 million	132.55	-$198.13 million	($1.44)	-3.05
Eloxx Pharmaceuticals	N/A	N/A	-$36.06 million	($9.07)	0.00

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

Profitability

This table compares Prime Medicine and Eloxx Pharmaceuticals’ 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%
Eloxx Pharmaceuticals	N/A	N/A	N/A

Institutional and Insider Ownership

70.4% of Prime Medicine shares are held by institutional investors. Comparatively, 2.9% of Eloxx Pharmaceuticals shares are held by institutional investors. 22.7% of Prime Medicine shares are held by company insiders. Comparatively, 20.2% of Eloxx Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Prime Medicine and Eloxx Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prime Medicine	0	3	4	0	2.57
Eloxx Pharmaceuticals	0	0	0	0	0.00

Prime Medicine currently has a consensus price target of $7.21, suggesting a potential upside of 64.24%. Given Prime Medicine’s stronger consensus rating and higher probable upside, analysts plainly believe Prime Medicine is more favorable than Eloxx Pharmaceuticals.

Summary

Prime Medicine beats Eloxx Pharmaceuticals on 8 of the 12 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 Eloxx Pharmaceuticals

Eloxx Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on developing ribosome modulation for the treatment of rare and ultra-rare premature stop codon diseases. Its lead investigational drug product candidate is ELX-02, which is in Phase 2 clinical trial for the treatment of cystic fibrosis and nephropathic cystinosis patients with diagnosed nonsense mutations. The company also develops various preclinical programs for the treatment of alport syndrome, recessive dystrophic epidermolysis bullosa, junctional epidermolysis bullosa, and familial adenomatous polyposis, as well as various earlier discovery stage programs in oncology. Eloxx Pharmaceuticals, Inc. was founded in 2013 and is headquartered in Watertown, Massachusetts.