Financial Contrast: Alvotech (NASDAQ:ALVO) & Editas Medicine (NASDAQ:EDIT)
by Michael Walen · The Markets DailyAlvotech (NASDAQ:ALVO – Get Free Report) and Editas Medicine (NASDAQ:EDIT – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Earnings and Valuation
This table compares Alvotech and Editas Medicine”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alvotech | $588.90 million | 2.56 | $27.92 million | ($0.61) | -8.20 |
| Editas Medicine | $47.01 million | 7.68 | -$160.06 million | ($0.75) | -3.13 |
Alvotech has higher revenue and earnings than Editas Medicine. Alvotech is trading at a lower price-to-earnings ratio than Editas Medicine, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Alvotech and Editas Medicine’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alvotech | -36.31% | N/A | -11.73% |
| Editas Medicine | -157.32% | -196.63% | -38.17% |
Analyst Recommendations
This is a summary of current ratings and price targets for Alvotech and Editas Medicine, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alvotech | 1 | 2 | 4 | 0 | 2.43 |
| Editas Medicine | 1 | 0 | 6 | 0 | 2.71 |
Alvotech currently has a consensus price target of $8.50, indicating a potential upside of 70.00%. Editas Medicine has a consensus price target of $5.83, indicating a potential upside of 148.23%. Given Editas Medicine’s stronger consensus rating and higher probable upside, analysts clearly believe Editas Medicine is more favorable than Alvotech.
Insider & Institutional Ownership
71.9% of Editas Medicine shares are owned by institutional investors. 0.5% of Alvotech shares are owned by insiders. Comparatively, 3.1% of Editas Medicine shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Alvotech has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, Editas Medicine has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500.
Summary
Editas Medicine beats Alvotech on 8 of the 14 factors compared between the two stocks.
About Alvotech
Alvotech, through its subsidiaries, develops and manufactures biosimilar medicines for patients worldwide. It offers biosimilar products in the therapeutic areas of autoimmune, eye, and bone disorders, as well as cancer. The company's lead program is AVT02, a high concentration formulation biosimilar to Humira to treat various inflammatory conditions, including rheumatoid arthritis, psoriatic arthritis, Crohn's disease, ulcerative colitis, plaque psoriasis, and other indications; AVT04, a biosimilar to Stelara to treat various inflammatory conditions comprising psoriatic arthritis, Crohn's disease, ulcerative colitis, plaque psoriasis, and other indications; AVT06, a biosimilar to Eylea to treat various conditions, such as age-related macular degeneration, macular edema, and diabetic retinopathy; and AVT03, a biosimilar to Xgeva and Prolia, which is in the pre-clinical phase to treat prevent bone fracture, spinal cord compression, and the need for radiation or bone surgery in patients with certain types of cancer, as well as prevent bone loss and increase bone mass. In addition, it offers AVT05, a biosimilar to Simponi and Simponi Aria, which is in early phase development to treat various inflammatory conditions, including rheumatoid arthritis, psoriatic arthritis, ulcerative colitis, and other indications; AVT16, a biosimilar to an Entyvio product; AVT23, a biosimilar to Xolair, which is in late-stage development to treat nasal polyps; and AVT33, a biosimilar to an Keytruda product. Alvotech was founded in 2013 and is based in Luxembourg, Luxembourg.
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.