Analyzing PAREXEL International (PRXL) & Editas Medicine (EDIT)

PAREXEL International (NASDAQ: PRXL) and Editas Medicine (NASDAQ:EDIT) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
PAREXEL International 4.62% 19.95% 5.29%
Editas Medicine -1,127.03% -70.19% -37.08%

Institutional & Insider Ownership

87.5% of PAREXEL International shares are held by institutional investors. Comparatively, 64.5% of Editas Medicine shares are held by institutional investors. 2.9% of PAREXEL International shares are held by company insiders. Comparatively, 19.4% of Editas Medicine shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for PAREXEL International and Editas Medicine, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PAREXEL International 0 4 2 0 2.33
Editas Medicine 0 4 5 0 2.56

PAREXEL International currently has a consensus target price of $82.52, suggesting a potential upside of Infinity. Editas Medicine has a consensus target price of $32.60, suggesting a potential downside of 7.91%. Given PAREXEL International’s higher probable upside, equities research analysts plainly believe PAREXEL International is more favorable than Editas Medicine.

Valuation and Earnings

This table compares PAREXEL International and Editas Medicine’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PAREXEL International N/A N/A N/A $2.05 N/A
Editas Medicine $6.05 million 265.41 -$97.18 million ($3.24) -10.93

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

Summary

PAREXEL International beats Editas Medicine on 7 of the 11 factors compared between the two stocks.

PAREXEL International Company Profile

PAREXEL International Corporation (PAREXEL) is a biopharmaceutical outsourcing services company. The Company provides a range of expertise in clinical research, clinical logistics, medical communications, consulting, commercialization, and technology products and services to pharmaceutical, biotechnology and medical device industries. Its segments include Clinical Research Services (CRS), PAREXEL Consulting Services (PC) and PAREXEL Informatics (PI). The CRS segment includes various phases of clinical research from first-in-man trials, where a medicinal entity is tested on human subjects for the first time, through post-marketing studies, following approval by the presiding regulatory body. The PC segment provides technical expertise and advice in areas, such as strategy, drug development, regulatory affairs, strategic compliance and targeted communications services in support of product launch. The Company’s PI segment provides information technology solutions.

Editas Medicine Company Profile

Editas Medicine, Inc. is a genome editing company. It is engaged in treating patients with genetically defined diseases by correcting their disease-causing genes. It operates through developing and commercializing genome editing technology segment. It is developing a genome editing platform based on clustered, regularly interspaced short palindromic repeats (CRISPR) technology. CRISPR uses a protein-ribonucleic acid (RNA) complex composed of an enzyme, including either CRISPR associated protein 9 (Cas9) or CRISPR from Prevotella and Francisella 1 (Cpf1), bound to a guide RNA molecule designed to recognize a particular deoxyribonucleic acid (DNA) sequence. Its platform consists of four components: nuclease engineering, delivery, control and specificity, and directed editing. Its programs include Eye Diseases, Engineered T Cell Therapies for Immuno-Oncology and additional research programs. It is developing a genome editing therapeutic for Leber Congenital Amaurosis type 10 (LCA10).

Receive News & Ratings for PAREXEL International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PAREXEL International and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply