Analyzing Beam Therapeutics (NASDAQ:BEAM) and PTC Therapeutics (NASDAQ:PTCT)

Beam Therapeutics (NASDAQ:BEAM) and PTC Therapeutics (NASDAQ:PTCT) are both mid-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Risk and Volatility

Beam Therapeutics has a beta of 2.23, suggesting that its stock price is 123% more volatile than the S&P 500. Comparatively, PTC Therapeutics has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Earnings & Valuation

This table compares Beam Therapeutics and PTC Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beam Therapeutics	$139.74 million	17.80	-$79.99 million	($1.04)	-23.11
PTC Therapeutics	$1.16 billion	4.58	$682.64 million	($1.40)	-45.26

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

Profitability

This table compares Beam Therapeutics and PTC Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beam Therapeutics	-73.04%	-32.76%	-25.80%
PTC Therapeutics	-9.17%	N/A	-0.10%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Beam Therapeutics and PTC Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beam Therapeutics	1	2	9	1	2.77
PTC Therapeutics	1	3	10	1	2.73

Beam Therapeutics presently has a consensus target price of $47.64, suggesting a potential upside of 98.24%. PTC Therapeutics has a consensus target price of $99.23, suggesting a potential upside of 56.61%. Given Beam Therapeutics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Beam Therapeutics is more favorable than PTC Therapeutics.

Insider & Institutional Ownership

99.7% of Beam Therapeutics shares are owned by institutional investors. 3.8% of Beam Therapeutics shares are owned by insiders. Comparatively, 5.3% of PTC Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

PTC Therapeutics beats Beam Therapeutics on 7 of the 13 factors compared between the two stocks.

About Beam Therapeutics

Beam Therapeutics is a biotechnology company developing genetic medicines using base editing, a form of gene editing designed to make precise changes to DNA. Its platform includes base-editing technologies and delivery systems intended to address diseases by altering the genetic instructions involved in their development. The company’s research and development programs include potential treatments for genetic diseases, including sickle cell disease. Its work spans medicines made by editing a patient’s cells outside the body as well as approaches intended to deliver gene editing directly to cells in the body.

About PTC Therapeutics

PTC Therapeutics is a biopharmaceutical company focused on discovering, developing and commercializing medicines for rare diseases. Founded in 1998 and headquartered in Warren, New Jersey, the company works across several therapeutic areas, including genetic and neurological disorders. Its products include Kebilidi (eladocagene exuparvovec), a gene therapy for aromatic L-amino acid decarboxylase deficiency, and Sephience (sepiapterin), a treatment for phenylketonuria. PTC has also developed medicines for Duchenne muscular dystrophy, including ataluren, marketed as Translarna in some regions.