Head to Head Contrast: Outlook Therapeutics (NASDAQ:OTLK) and Editas Medicine (NASDAQ:EDIT)

Outlook Therapeutics (NASDAQ:OTLK) and Editas Medicine (NASDAQ:EDIT) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Volatility and Risk

Outlook Therapeutics has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500. Comparatively, Editas Medicine has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500.

Insider and Institutional Ownership

11.2% of Outlook Therapeutics shares are held by institutional investors. Comparatively, 71.9% of Editas Medicine shares are held by institutional investors. 5.3% of Outlook Therapeutics shares are held by insiders. Comparatively, 1.9% of Editas 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.

Valuation and Earnings

This table compares Outlook Therapeutics and Editas Medicine’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Outlook Therapeutics	N/A	N/A	-$58.98 million	($4.00)	-2.05
Editas Medicine	$78.12 million	5.63	-$153.22 million	($2.05)	-2.61

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

Profitability

This table compares Outlook Therapeutics and Editas Medicine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Outlook Therapeutics	N/A	-3,741.39%	-132.37%
Editas Medicine	-196.12%	-42.95%	-30.49%

Analyst Ratings

This is a breakdown of current ratings and target prices for Outlook Therapeutics and Editas Medicine, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outlook Therapeutics	0	1	7	0	2.88
Editas Medicine	0	4	5	0	2.56

Outlook Therapeutics currently has a consensus price target of $46.43, suggesting a potential upside of 466.16%. Editas Medicine has a consensus price target of $15.00, suggesting a potential upside of 180.37%. Given Outlook Therapeutics’ stronger consensus rating and higher probable upside, research analysts plainly believe Outlook Therapeutics is more favorable than Editas Medicine.

Summary

Outlook Therapeutics beats Editas Medicine on 7 of the 13 factors compared between the two stocks.

About Outlook Therapeutics

Outlook Therapeutics, Inc., operates as a clinical-stage biopharmaceutical company, focuses on developing and commercializing monoclonal antibodies for various ophthalmic indications. Its lead product candidate is ONS-5010, an ophthalmic formulation of bevacizumab product candidate that is in Phase-III clinical trial for the treatment of wet age-related macular degeneration and other retina diseases. Outlook Therapeutics, Inc. has collaboration and license agreements with BioLexis Pte. Ltd. and Zhejiang Huahai Pharmaceutical Co., Ltd. The company was formerly known as Oncobiologics, Inc. and changed its name to Outlook Therapeutics, Inc. in November 2018. Outlook Therapeutics, Inc. was incorporated in 2010 and is based in Iselin, New Jersey.

About Editas Medicine

Editas Medicine, Inc., a clinical stage genome editing company, focuses on developing transformative genomic medicines to treat a range of serious diseases. It develops a proprietary gene editing platform based on CRISPR technology. The company develops EDIT-101, which is in Phase 1/2 BRILLIANCE trial for Leber Congenital Amaurosis; and reni-cel, a clinical development gene-edited medicine to treat sickle cell disease and transfusion-dependent beta-thalassemia. In addition, the company is developing alpha-beta T cells for solid and liquid tumors; and gamma delta T cell therapies to treat cancer. It has a research collaboration with Juno Therapeutics, Inc. to develop engineered T cells for cancer; strategic alliance and option agreement with Allergan Pharmaceuticals International Limited. The company was formerly known as Gengine, Inc. and changed its name to Editas Medicine, Inc. in November 2013. Editas Medicine, Inc. was incorporated in 2013 and is based in Cambridge, Massachusetts.