Financial Survey: Genmab A/S (NASDAQ:GMAB) & Editas Medicine (NASDAQ:EDIT)
by Mitch Edgeman · The Markets DailyEditas Medicine (NASDAQ:EDIT – Get Free Report) and Genmab A/S (NASDAQ:GMAB – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.
Institutional & Insider Ownership
71.9% of Editas Medicine shares are held by institutional investors. Comparatively, 7.1% of Genmab A/S shares are held by institutional investors. 3.1% of Editas Medicine shares are held by insiders. Comparatively, 1.5% of Genmab A/S shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Editas Medicine has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500. Comparatively, Genmab A/S has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for Editas Medicine and Genmab A/S, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Editas Medicine | 1 | 0 | 5 | 0 | 2.67 |
| Genmab A/S | 0 | 3 | 9 | 1 | 2.85 |
Editas Medicine currently has a consensus target price of $5.80, indicating a potential upside of 115.61%. Genmab A/S has a consensus target price of $39.50, indicating a potential upside of 13.67%. Given Editas Medicine’s higher probable upside, equities research analysts clearly believe Editas Medicine is more favorable than Genmab A/S.
Valuation and Earnings
This table compares Editas Medicine and Genmab A/S”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Editas Medicine | $40.52 million | 10.20 | -$160.06 million | ($0.75) | -3.59 |
| Genmab A/S | $3.72 billion | 5.83 | $963.00 million | $1.27 | 27.36 |
Genmab A/S has higher revenue and earnings than Editas Medicine. Editas Medicine is trading at a lower price-to-earnings ratio than Genmab A/S, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Editas Medicine and Genmab A/S’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Editas Medicine | -157.32% | -196.63% | -38.17% |
| Genmab A/S | 19.08% | 14.89% | 7.73% |
Summary
Genmab A/S beats Editas Medicine on 10 of the 15 factors compared between the two stocks.
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.
About Genmab A/S
Genmab A/S develops antibody therapeutics for the treatment of cancer and other diseases primarily in Denmark. The company markets DARZALEX, a human monoclonal antibody for the treatment of patients with multiple myeloma (MM); teprotumumab for the treatment of thyroid eye disease; and Amivantamab for advanced or metastatic gastric or esophageal cancer and NSCLC. Its products include daratumumab to treat MM, non-MM blood cancers, and AL amyloidosis; GEN1047; tisotumab vedotin for treating cervical, ovarian, and solid cancers; DuoBody-PD-L1x4-1BB, and DuoBody-CD40x4-1BB for treating solid tumors; Epcoritamab for relapsed/refractory diffuse large B-cell lymphoma and chronic lymphocytic leukemia; and HexaBody-CD38 and GEN3017 for treating hematological malignancies. In addition, the company develops Inclacumab, which is in Phase 3 trial for vaso-occlusive crises; Camidanlumab tesirine to treat hodgkin lymphoma and solid tumors; JNJ-64007957 and JNJ-64407564 to treat MM; PRV-015 for treating celiac disease; Mim8 for treating haemophilia A; and Lu AF82422 for treating multiple system atrophy disease. It operates various active pre-clinical programs. The company has a commercial license and collaboration agreement with Seagen Inc. to co-develop tisotumab vedotin. It also has a collaboration agreement with argenx to discover, develop, and commercialize novel therapeutic antibodies with applications in immunology and oncology; and AbbVie for the development of epcoritamab, as well as collaborations with BioNTech, Janssen, and Novo Nordisk A/S. Genmab A/S was founded in 1999 and is headquartered in Copenhagen, Denmark.