Reviewing SQZ Biotechnologies (NYSE:SQZ) and Precision BioSciences (NASDAQ:DTIL)

SQZ Biotechnologies (NYSE:SQZ) and Precision BioSciences (NASDAQ:DTIL) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Volatility and Risk

SQZ Biotechnologies has a beta of 2.34, suggesting that its share price is 134% more volatile than the S&P 500. Comparatively, Precision BioSciences has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.

Earnings and Valuation

This table compares SQZ Biotechnologies and Precision BioSciences”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SQZ Biotechnologies	$18.16 million	0.05	-$79.46 million	($2.61)	-0.01
Precision BioSciences	$48.73 million	0.75	-$61.32 million	$0.06	78.93

Precision BioSciences has higher revenue and earnings than SQZ Biotechnologies. SQZ Biotechnologies is trading at a lower price-to-earnings ratio than Precision BioSciences, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

38.5% of SQZ Biotechnologies shares are owned by institutional investors. Comparatively, 38.0% of Precision BioSciences shares are owned by institutional investors. 16.0% of SQZ Biotechnologies shares are owned by company insiders. Comparatively, 4.0% of Precision BioSciences shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for SQZ Biotechnologies and Precision BioSciences, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SQZ Biotechnologies	0	0	0	0	0.00
Precision BioSciences	0	0	3	0	3.00

Precision BioSciences has a consensus price target of $37.67, suggesting a potential upside of 695.49%. Given Precision BioSciences’ stronger consensus rating and higher probable upside, analysts clearly believe Precision BioSciences is more favorable than SQZ Biotechnologies.

Profitability

This table compares SQZ Biotechnologies and Precision BioSciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SQZ Biotechnologies	-369.96%	-119.83%	-59.90%
Precision BioSciences	11.48%	-23.69%	-6.98%

Summary

Precision BioSciences beats SQZ Biotechnologies on 11 of the 14 factors compared between the two stocks.

About SQZ Biotechnologies

SQZ Biotechnologies Company, a clinical-stage biotechnology company, develops cell therapies for patients with cancer, autoimmune, infectious diseases, and other serious conditions. Its lead product candidate is SQZ-PBMC-HPV, from its SQZ Antigen Presenting Cells platform, which is in a Phase I clinical trial as a monotherapy and in combination with immuno-oncology agents for the treatment of HPV16+ advanced or metastatic solid tumors, including cervical, head-and-neck, anal, penile, vulvar, and vaginal cancer. The company also develops SQZ-AAC-HPV, which is in a Phase I clinical trial for the treatment of HPV16+ advanced or metastatic solid tumors in monotherapy and in combinations with immune-oncology agents. Its additional platforms in development are SQZ Activating Antigen Carriers; and SQZ Tolerizing Antigen Carriers. The Company was incorporated in 2013 and is headquartered in Watertown, Massachusetts.

About Precision BioSciences

Precision BioSciences, Inc., an advanced gene editing company, develops in vivo gene editing therapies for gene edits, including gene elimination, insertion, and excision in the United States. The company offers ARCUS, a genome editing platform to DNA genome insertion, deletion, and repair. It also provides PBGENE-HBV for the treatment of chronic hepatitis B virus (HBV) to eliminate covalently closed circular DNA with direct cuts and edits as well as to inactivate integrated HBV DNA with the goal of long-lasting reductions in hepatitis B surface antigen; PBGENE-PMM for the treatment of m.3243 associated primary mitochondrial myopathy (PMM) which is expected to submit an IND and/or CTA. In addition, it develops PBGENE-NVS for sickle cell disease/beta thalassemia for insertion; PBGENE-DMD (excision) for duchenne muscular dystrophy; PBGENE-LL2 (insertion), a liver directed target; PBGENE-LL3, a central nervous system directed target; and iECURE-OTC (insertion) for ornithine transcarbamylase deficiency. The company has license and collaboration agreement with Caribou Biosciences, Inc.; license agreement with TG Cell Therapy, Inc. to develop, manufacture, and commercialize azer-cel for autoimmune diseases and other indications outside of cancer; development and license agreement with Eli Lilly and Company for the research and development of potential in vivo therapies for genetic disorders; Cellectis S.A.; iECURE, Inc. to develop ARCUS-based gene-insertion therapies; Duke University; and Novartis Pharma AG to discover and develop in vivo gene editing products. Precision BioSciences, Inc. was incorporated in 2006 and is headquartered in Durham, North Carolina.