Comparing Prelude Therapeutics (NASDAQ:PRLD) and Intra-Cellular Therapies (NASDAQ:ITCI)

Prelude Therapeutics (NASDAQ:PRLD) and Intra-Cellular Therapies (NASDAQ:ITCI) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Volatility & Risk

Prelude Therapeutics has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Intra-Cellular Therapies has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Profitability

This table compares Prelude Therapeutics and Intra-Cellular Therapies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prelude Therapeutics	N/A	-59.82%	-51.55%
Intra-Cellular Therapies	-21.57%	-18.49%	-15.26%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Prelude Therapeutics and Intra-Cellular Therapies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prelude Therapeutics	2	1	0	0	1.33
Intra-Cellular Therapies	0	2	9	0	2.82

Prelude Therapeutics presently has a consensus target price of $4.75, indicating a potential downside of 10.04%. Intra-Cellular Therapies has a consensus target price of $96.73, indicating a potential upside of 25.64%. Given Intra-Cellular Therapies’ stronger consensus rating and higher possible upside, analysts plainly believe Intra-Cellular Therapies is more favorable than Prelude Therapeutics.

Earnings & Valuation

This table compares Prelude Therapeutics and Intra-Cellular Therapies’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prelude Therapeutics	N/A	N/A	-$121.83 million	($1.88)	-2.81
Intra-Cellular Therapies	$563.44 million	14.43	-$139.67 million	($1.16)	-66.37

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

Insider and Institutional Ownership

79.7% of Prelude Therapeutics shares are held by institutional investors. Comparatively, 92.3% of Intra-Cellular Therapies shares are held by institutional investors. 62.8% of Prelude Therapeutics shares are held by company insiders. Comparatively, 3.4% of Intra-Cellular Therapies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Intra-Cellular Therapies beats Prelude Therapeutics on 8 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 Intra-Cellular Therapies

Intra-Cellular Therapies, Inc., a biopharmaceutical company, focuses on the discovery, clinical development, and commercialization of small molecule drugs that address medical needs primarily in neuropsychiatric and neurological disorders by targeting intracellular signaling mechanisms in the central nervous system (CNS) in the United States. The company offers CAPLYTA for the treatment of schizophrenia and bipolar depression in adults. It is also involved in developing Lumateperone, which is in Phase 3 clinical trial for the treatment of various depressive disorders, as well as additional neuropsychiatric indications. In addition, the company is developing Lenrispodun (ITI-214) for the treatment of Parkinson's disease, CNS, and other disorders; ITI-1284 for the treatment of neuropsychiatric disorders and behavioral disturbances in dementia; and ITI-333 for substance use disorders, pain, and psychiatric comorbidities, including depression, anxiety, and sleep disorders. Intra-Cellular Therapies, Inc. was founded in 2002 and is headquartered in New York, New York.