Financial Analysis: Organogenesis (NASDAQ:ORGO) & Prelude Therapeutics (NASDAQ:PRLD)

Prelude Therapeutics (NASDAQ:PRLD) and Organogenesis (NASDAQ:ORGO) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Insider & Institutional Ownership

79.7% of Prelude Therapeutics shares are held by institutional investors. Comparatively, 49.6% of Organogenesis shares are held by institutional investors. 63.9% of Prelude Therapeutics shares are held by insiders. Comparatively, 33.0% of Organogenesis shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Prelude Therapeutics and Organogenesis, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prelude Therapeutics	1	0	2	0	2.33
Organogenesis	0	1	2	0	2.67

Prelude Therapeutics presently has a consensus price target of $5.50, suggesting a potential upside of 66.67%. Organogenesis has a consensus price target of $8.50, suggesting a potential upside of 221.97%. Given Organogenesis’ stronger consensus rating and higher possible upside, analysts plainly believe Organogenesis is more favorable than Prelude Therapeutics.

Profitability

This table compares Prelude Therapeutics and Organogenesis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prelude Therapeutics	N/A	-129.98%	-80.85%
Organogenesis	5.32%	21.41%	10.84%

Volatility & Risk

Prelude Therapeutics has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Organogenesis has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Valuation & Earnings

This table compares Prelude Therapeutics and Organogenesis”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prelude Therapeutics	$12.14 million	17.09	-$127.17 million	($1.29)	-2.56
Organogenesis	$564.17 million	0.60	$37.03 million	$0.08	33.00

Organogenesis has higher revenue and earnings than Prelude Therapeutics. Prelude Therapeutics is trading at a lower price-to-earnings ratio than Organogenesis, indicating that it is currently the more affordable of the two stocks.

Summary

Organogenesis beats Prelude Therapeutics on 10 of the 13 factors compared between the two stocks.

About Prelude Therapeutics

Prelude Therapeutics Incorporated, a clinical-stage biopharmaceutical company, focuses on the discovery and development of novel precision cancer medicines to underserved patients. It is developing PRT1419, a myeloid cell leukemia-1 inhibitor, which is in Phase 1 clinical trial for the treatment of selected relapsed/refractory myeloid or B-cell malignancies; PRT2527, a cyclin-dependent kinase, which is in Phase 1 clinical trial for the treatment of advanced solid tumors; PRT3645, a cyclin-dependent kinase 4/6 inhibitor, which is in Phase 1 clinical trial for the treatment of advanced and metastatic solid tumors; and PRT3879, a SMARCA2 selective protein degrader, which is in Phase 2/3 clinical trial for the treatment of advanced and metastatic solid tumors with loss of SMARCA4 due to truncating mutation and/or deletion. The company's CDK9 program is a regulator of cancer-promoting transcriptional programs, including MCL1, MYC and MYB. Prelude Therapeutics Incorporated was incorporated in 2016 and is based in Wilmington, Delaware.

About Organogenesis

Organogenesis Holdings Inc., a regenerative medicine company, develops, manufactures, and commercializes solutions for the advanced wound care, and surgical and sports medicine markets in the United States. The company's advanced wound care products include Affinity, an amniotic membrane in which viable cells, growth factors/cytokines, and ECM proteins in the native tissue are preserved; Novachor, a chorion membrane in which viable cells, growth factors/cytokines, and ECM proteins in the native tissue are preserved; Apligraf, a bioengineered living cell therapy that produce spectrum of cytokines and growth factors; Dermagraft, a bioengineered product that produces human collagen, ECM, proteins, cytokines, and growth factors; NuShield, dehydrated placental tissue covering amnion and chorion membranes for spongy/intermediate layer intact; and PuraPly AM, an antimicrobial barrier that enables conformability and fluid drainage. Its products also include FortiShield, a biosynthetic wound matrix for use as a temporary protective covering; PuraPly MZ, a micronized particulate version of PuraPly for the management of open wounds in the surgical setting; and CYGNUS Dual, a dehydrated placental tissue preserved to retain the ECM scaffold. The company's pipeline products include ReNu, a cryopreserved suspension used to support healing of soft tissues; PuraForce, a bioengineered porcine collagen surgical matrix for use in soft tissue reinforcement applications; and TransCyte, a bioengineered tissue for the treatment of partial thickness burns. It serves hospitals, wound care centers, government facilities, ambulatory service centers, and physician office through direct sales representives and independent agencies. Organogenesis Holdings Inc. was founded in 1985 and is headquartered in Canton, Massachusetts.