Precision BioSciences (NASDAQ:DTIL – Get Rating) and Eloxx Pharmaceuticals (NASDAQ:ELOX – Get Rating) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
Valuation & Earnings
This table compares Precision BioSciences and Eloxx Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Precision BioSciences | $115.53 million | 1.10 | -$30.60 million | ($1.52) | -0.76 |
| Eloxx Pharmaceuticals | N/A | N/A | -$66.73 million | ($19.20) | -0.17 |
Precision BioSciences has higher revenue and earnings than Eloxx Pharmaceuticals. Precision BioSciences 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 Precision BioSciences and Eloxx Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Precision BioSciences | -505.97% | -119.45% | -43.25% |
| Eloxx Pharmaceuticals | N/A | -541.57% | -112.63% |
Institutional and Insider Ownership
50.5% of Precision BioSciences shares are owned by institutional investors. 8.5% of Precision BioSciences shares are owned by insiders. Comparatively, 18.6% of Eloxx Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Precision BioSciences has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Eloxx Pharmaceuticals has a beta of 2.64, meaning that its share price is 164% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Precision BioSciences and Eloxx Pharmaceuticals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Precision BioSciences | 0 | 2 | 2 | 0 | 2.50 |
| Eloxx Pharmaceuticals | 0 | 0 | 1 | 0 | 3.00 |
Precision BioSciences currently has a consensus price target of $5.00, indicating a potential upside of 334.78%. Eloxx Pharmaceuticals has a consensus price target of $1.25, indicating a potential downside of 61.54%. Given Precision BioSciences’ higher possible upside, equities research analysts plainly believe Precision BioSciences is more favorable than Eloxx Pharmaceuticals.
Summary
Precision BioSciences beats Eloxx Pharmaceuticals on 8 of the 13 factors compared between the two stocks.
About Precision BioSciences
Precision BioSciences, Inc. is a biotechnology company, which engages in the development of genome editing technologies. It operates through the Therapeutics and Food segments. The Therapeutics segment focuses on the development of products in the field of immuno-oncology and of novel products outside immuno-oncology to treat human diseases. The Food segment applies ARCUS, the company’s proprietary genome editing platform, to develop food and nutrition products through collaboration agreements with consumer-facing companies. The company was founded by Derek N. Jantz, Jeff Smith, and Matthew R. Kane on January 26, 2006 and is headquartered in Durham, NC.
About Eloxx Pharmaceuticals
Eloxx Pharmaceuticals, Inc. engages in the development of novel ribonucleic acid-modulating drug candidates. The firm focuses on the the formulation of medicines to treat rare and ultra-rare premature stop codon diseases. Its lead product candidate is ELX-02, a small molecule drug designed to restore production of full-length functional proteins. It operates through the United States and Israel geographical segments. The company was founded by Silvia Noiman on December 19, 2017 and is headquartered in Watertown, MA.
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