Praxis Precision Medicines (NASDAQ:PRAX – Get Free Report) and Sangamo Therapeutics (NASDAQ:SGMO – Get Free Report) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
Insider and Institutional Ownership
67.8% of Praxis Precision Medicines shares are owned by institutional investors. Comparatively, 56.9% of Sangamo Therapeutics shares are owned by institutional investors. 2.7% of Praxis Precision Medicines shares are owned by company insiders. Comparatively, 4.1% of Sangamo Therapeutics shares are owned 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.
Volatility and Risk
Praxis Precision Medicines has a beta of 2.84, indicating that its share price is 184% more volatile than the S&P 500. Comparatively, Sangamo Therapeutics has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Praxis Precision Medicines | 2 | 1 | 12 | 3 | 2.89 |
| Sangamo Therapeutics | 1 | 2 | 1 | 0 | 2.00 |
Praxis Precision Medicines presently has a consensus target price of $536.06, suggesting a potential upside of 68.97%. Sangamo Therapeutics has a consensus target price of $4.33, suggesting a potential upside of 1,020.01%. Given Sangamo Therapeutics’ higher possible upside, analysts clearly believe Sangamo Therapeutics is more favorable than Praxis Precision Medicines.
Valuation & Earnings
This table compares Praxis Precision Medicines and Sangamo Therapeutics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Praxis Precision Medicines | $8.55 million | 934.68 | -$182.82 million | ($12.90) | -24.59 |
| Sangamo Therapeutics | $57.80 million | 2.25 | -$97.94 million | ($0.44) | -0.88 |
Sangamo Therapeutics has higher revenue and earnings than Praxis Precision Medicines. Praxis Precision Medicines is trading at a lower price-to-earnings ratio than Sangamo Therapeutics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Praxis Precision Medicines and Sangamo Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Praxis Precision Medicines | N/A | -66.90% | -60.30% |
| Sangamo Therapeutics | -331.28% | -813.95% | -116.48% |
Summary
Praxis Precision Medicines beats Sangamo Therapeutics on 9 of the 15 factors compared between the two stocks.
About Praxis Precision Medicines
Praxis Precision Medicines, Inc., a clinical-stage biopharmaceutical company, engages in the development of therapies for central nervous system disorders characterized by neuronal excitation-inhibition imbalance. It is developing ulixacaltamide, a small molecule inhibitor of T-type calcium channels that is in Phase III clinical trial for the treatment of essential tremor; PRAX-562 for the treatment of pediatric patients with developmental and epileptic encephalopathies (DEE); and PRAX-628 to treat focal epilepsy. The company also develops PRAX-222 for the treatment of pediatric patients with early-onset SCN2A-DEE; PRAX-020 to treat KCNT1 related epilepsies; PRAX-080 for the treatment of PCDH19; and PRAX-090 and PRAX-100 for SYNGAP1 and SCN2A-LoF. It has a license agreement with RogCon Inc.; a research collaboration and license agreement with Ionis Pharmaceuticals, Inc.; a strategic collaboration and license agreement with UCB Biopharma SRL; and collaboration with The Florey Institute to develop three novel ASOs. The company was incorporated in 2015 and is based in Boston, Massachusetts.
About Sangamo Therapeutics
Sangamo Therapeutics, Inc., a clinical-stage genomic medicine company, focuses on translating science into medicines that transform the lives of patients and families afflicted with serious diseases in the United States. The company's clinical-stage product candidates are ST-920, a gene therapy product candidate, which is in Phase 1/2 clinical study for the treatment of Fabry disease; TX200, a chimeric antigen receptor engineered regulatory T cell (CAR-Treg) therapy product candidate that is in Phase 1/2 clinical study for the prevention of immune-mediated rejection in HLA-A2 mismatched kidney transplantation; SB-525, a gene therapy product candidate, which is in Phase 3 clinical trial for the treatment of moderately severe to severe hemophilia A; BIVV003, a zinc finger nuclease gene-edited cell therapy product candidate that is in Phase 1/2 PRECIZN-1 clinical study for the treatment of sickle cell disease. Its preclinical development products focus on CAR-Treg cell therapies for autoimmune disorders and genome engineering for neurological diseases. Sangamo Therapeutics, Inc. has collaborative and strategic partnerships with Biogen MA, Inc.; Kite Pharma, Inc.; Pfizer Inc.; Sanofi S.A.; Novartis Institutes for BioMedical Research, Inc.; Shire International GmbH; Dow AgroSciences LLC; Sigma-Aldrich Corporation; Genentech, Inc.; Open Monoclonal Technology, Inc.; and California Institute for Regenerative Medicine. The company was formerly known as Sangamo BioSciences, Inc. and changed its name to Sangamo Therapeutics, Inc. in January 2017. Sangamo Therapeutics, Inc. was incorporated in 1995 and is headquartered in Richmond, California.
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