Prime Medicine (NYSE:PRME – Get Free Report) and Achilles Therapeutics (NASDAQ:ACHL – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.
Volatility and Risk
Prime Medicine has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500. Comparatively, Achilles Therapeutics has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.
Insider & Institutional Ownership
70.4% of Prime Medicine shares are held by institutional investors. Comparatively, 56.4% of Achilles Therapeutics shares are held by institutional investors. 23.5% of Prime Medicine shares are held by insiders. Comparatively, 5.4% of Achilles Therapeutics shares are held by 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.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Prime Medicine | $800,000.00 | 416.44 | -$198.13 million | ($2.05) | -1.24 |
| Achilles Therapeutics | N/A | N/A | -$69.67 million | ($1.65) | -0.84 |
Achilles Therapeutics has lower revenue, but higher earnings than Prime Medicine. Prime Medicine is trading at a lower price-to-earnings ratio than Achilles Therapeutics, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Prime Medicine and Achilles Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Prime Medicine | 0 | 0 | 9 | 1 | 3.10 |
| Achilles Therapeutics | 0 | 1 | 1 | 0 | 2.50 |
Prime Medicine presently has a consensus target price of $13.13, indicating a potential upside of 416.73%. Achilles Therapeutics has a consensus target price of $4.00, indicating a potential upside of 189.86%. Given Prime Medicine’s stronger consensus rating and higher possible upside, analysts clearly believe Prime Medicine is more favorable than Achilles Therapeutics.
Profitability
This table compares Prime Medicine and Achilles Therapeutics’ 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% |
| Achilles Therapeutics | N/A | -54.45% | -47.68% |
Summary
Prime Medicine beats Achilles Therapeutics on 8 of the 13 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 Achilles Therapeutics
Achilles Therapeutics plc, a biopharmaceutical company, develops precision T cell therapies to treat solid tumors. Its platform identifies mutations formed early in the development of cancer. The company offers PELEUS, a proprietary AI-powered bioinformatics platform, used to identify clonal neoantigens in a patient. It also develops CHIRON, which is in Phase I/IIa clinical trial for use in the treatment of advanced non-small cell lung cancer; and THETIS, a product candidate in Phase I/IIa clinical trial for use in the treatment of metastatic or recurrent melanoma. The company was formerly known as Achilles TX Limited and changed its name to Achilles Therapeutics Plc in February 2021. Achilles Therapeutics Plc was founded in 2016 and is headquartered in London, the United Kingdom.
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