Financial Survey: Vor Biopharma (NYSE:VOR) and Prime Medicine (NASDAQ:PRME)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vor Biopharma	N/A	N/A	N/A
Prime Medicine	-4,016.83%	-156.16%	-64.41%

Analyst Recommendations

This is a summary of recent ratings for Vor Biopharma and Prime Medicine, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vor Biopharma	0	4	5	0	2.56
Prime Medicine	0	0	0	0	0.00

Vor Biopharma presently has a consensus target price of $6.07, suggesting a potential upside of 234.25%. Given Vor Biopharma’s stronger consensus rating and higher probable upside, equities analysts clearly believe Vor Biopharma is more favorable than Prime Medicine.

Volatility and Risk

Vor Biopharma has a beta of 2.05, meaning that its share price is 105% more volatile than the S&P 500. Comparatively, Prime Medicine has a beta of 2.38, meaning that its share price is 138% more volatile than the S&P 500.

Valuation & Earnings

This table compares Vor Biopharma and Prime Medicine”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vor Biopharma	N/A	N/A	N/A	($13.66)	-0.13
Prime Medicine	$4.96 million	110.68	-$195.88 million	($1.56)	-2.62

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

Insider & Institutional Ownership

97.3% of Vor Biopharma shares are owned by institutional investors. Comparatively, 70.4% of Prime Medicine shares are owned by institutional investors. 0.5% of Vor Biopharma shares are owned by company insiders. Comparatively, 22.7% of Prime Medicine shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Vor Biopharma beats Prime Medicine on 8 of the 12 factors compared between the two stocks.

About Vor Biopharma

Vor Biopharma Inc. operates as a clinical-stage cell and genome engineering company. Its lead product is tremtelectogene empogeditemcel (trem-cel), an engineered hematopoietic stem cell (eHSC) product candidate that is in phase 1/2 trial to treat acute myeloid leukemia (AML) and other hematological malignancies. The company is also developing Mylotarg, a CD33-directed antibody drug conjugate (ADC) therapy for patients with leukemia; VCAR33, a CAR-T therapy designed to target CD33, a clinically validated target for AML, which are under preclinical and Phase 1/2 clinical studies; trem-cel + VCAR33 treatment system that is under preclinical studies for the treatment of AML; and CD33-CLL1 treatment system made with CD33-CLL1 multiplex-engineered eHSC and CD33-CLL1 multi-specific CAR-T, which are under preclinical studies for the treatment of AML. The company was incorporated in 2015 and is headquartered in Cambridge, Massachusetts.

About Prime Medicine

We are a biotechnology company committed to delivering a new class of differentiated one-time curative genetic therapies, Prime Editors, to address the widest spectrum of diseases by deploying our Prime Editing technology, which we believe is a versatile, precise, efficient and broad gene editing technology. Genetic mutations implicated in disease are diverse and can range from errors of a single base, known as point mutations, to errors that extend beyond a single base, such as insertions, deletions, duplications, or combinations thereof. We believe the ability to alter the human genome at the foundational level may confer the greatest therapeutic impact on human disease. Gene editing, including platforms such as Prime Editing, is a novel technology that is not yet clinically validated for human therapeutic use. Over the last decade, the field of genetic medicine has evolved tremendously, with groundbreaking advances in gene therapy, cell therapy, RNA therapy, and, more recently, gene editing. These technologies represent dramatic advancements for genetic therapies, but lack the versatility to precisely and efficiently correct the diverse range of mutations or DNA alterations implicated in disease. Prime Medicine was co-founded by a world-renowned leader in the field of gene editing, David Liu, Ph.D. Dr. Liu was joined as co-founder by Andrew Anzalone, M.D., Ph.D., who conceived of and developed Prime Editing technology. Drawn by the promise of Prime Editing’s ability to transform the field of gene editing, we have assembled a diverse team that has grown to more than 150 people as of September 30, 2022. There are no current plans for Dr. Liu to be an officer or director of our company following this offering. He is expected to continue to provide consulting services to us pursuant to a consulting agreement, which has a current term that runs through September 2025 and accommodates a previous commitment with respect to Beam Therapeutics Inc., which could result in or may create the appearance of a conflict of interest. He is also expected to retain his position and affiliation with the Broad Institute, Inc., Howard Hughes Medical Institute and Harvard University. On September 20, 2022, we achieved a major milestone as the United States Patent and Trademark Office, or the USPTO, issued U.S. Patent 11,447,770, or the ‘770 Patent, covering methods of using Prime Editors. The Broad Institute, Inc., or Broad Institute, prepared, filed and prosecuted the ‘770 Patent. While Broad Institute is the owner of the ‘770 Patent, it is exclusively licensed to us under the terms of the license agreement with Broad Institute. The ‘770 Patent is the first issued Prime Editing patent in our licensed patent portfolio and we believe it will be instrumental in protecting our Prime Editing platform and pipeline of gene editing programs. We believe our in-licensed and company-owned Prime Editing technology has transformative potential that could change the course of how disease is treated and overcome the challenges associated with current genetic therapies. We in-license our Prime Editing technology pursuant to a license agreement with Broad Institute. In addition, the license agreement grants us certain rights and licenses under certain patent rights Broad Institute owns or controls, including a license to the ‘770 Patent, which covers Prime Editing technology and expires in 2040. The licenses are limited to the field of prevention or treatment of human disease, and most licenses granted to us under the license agreement are further limited to the prevention or treatment of human disease by editing (including modifying or converting) or targeting DNA ex vivo, in vivo, or through xeno transplantation methods, which we refer to as the Prime Broad Field. We were incorporated under the laws of the State of Delaware in September 2019 under the name Prime Medicine, Inc. Our principal executive offices are located at 21 Erie Street, Cambridge, MA.