Prime Medicine (NYSE:PRME) and Inhibikase Therapeutics (NYSE:IKT) Financial Comparison

Prime Medicine (NYSE:PRME) and Inhibikase Therapeutics (NYSE:IKT) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for Prime Medicine and Inhibikase Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prime Medicine	0	3	4	1	2.75
Inhibikase Therapeutics	0	1	1	0	2.50

Prime Medicine currently has a consensus target price of $8.92, indicating a potential upside of 80.50%. Inhibikase Therapeutics has a consensus target price of $8.00, indicating a potential upside of 444.22%. Given Inhibikase Therapeutics’ higher probable upside, analysts plainly believe Inhibikase Therapeutics is more favorable than Prime Medicine.

Insider & Institutional Ownership

70.4% of Prime Medicine shares are owned by institutional investors. Comparatively, 3.8% of Inhibikase Therapeutics shares are owned by institutional investors. 22.7% of Prime Medicine shares are owned by insiders. Comparatively, 7.3% of Inhibikase Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Prime Medicine and Inhibikase Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prime Medicine	N/A	-107.87%	-74.97%
Inhibikase Therapeutics	N/A	-350.63%	-201.82%

Volatility and Risk

Prime Medicine has a beta of 2.65, suggesting that its share price is 165% more volatile than the S&P 500. Comparatively, Inhibikase Therapeutics has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Earnings and Valuation

This table compares Prime Medicine and Inhibikase Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prime Medicine	$4.96 million	134.00	-$198.13 million	($1.56)	-3.17
Inhibikase Therapeutics	N/A	N/A	-$19.03 million	($0.91)	-1.62

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

Summary

Prime Medicine beats Inhibikase Therapeutics on 9 of the 13 factors compared between the two stocks.

About Prime Medicine

Prime Medicine, Inc., a biotechnology company, delivers genetic therapies to address the spectrum of diseases by deploying gene editing technology. The company offers Prime Editors with a Prime Editor protein, comprising a fusion between a Cas protein and a reverse transcriptase enzyme; and a pegRNA, which targets the Prime Editor to a specific genomic location and provides a template for making the desired edit to the target DNA sequence. It has a research collaboration with Cimeio Therapeutics to develop Prime Edited Shielded-Cell & Immunotherapy Pairs for genetic diseases, acute myeloid leukemia, and myelodysplastic syndrome. The company was incorporated in 2019 and is based in Cambridge, Massachusetts.

About Inhibikase Therapeutics

Inhibikase Therapeutics, Inc., a clinical-stage pharmaceutical company, develops therapeutics for Parkinson’s disease and related disorders. Its lead product candidate is IkT-148009, a non-receptor Abelson tyrosine kinase inhibitor, which is in Phase 2a clinical trials to the treatment of Parkinson’s disease and gastrointestinal tract. The company is also developing IkT-001Pro, a prodrug of the anticancer agent imatinib mesylate to treat stable phase chronic myelogenous leukemia. Inhibikase Therapeutics, Inc. has research and development collaborations with Johns Hopkins University, Arizona State University, and Michigan State University; and a collaborative research and development agreement with Sphaera Pharma Pte. Ltd. The company was founded in 2008 and is headquartered in Atlanta, Georgia.