Financial Review: Edgewise Therapeutics (NASDAQ:EWTX) versus Prestige Consumer Healthcare (NYSE:PBH)

Prestige Consumer Healthcare (NYSE:PBH) and Edgewise Therapeutics (NASDAQ:EWTX) are both mid-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Profitability

This table compares Prestige Consumer Healthcare and Edgewise Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prestige Consumer Healthcare	18.43%	12.55%	6.11%
Edgewise Therapeutics	N/A	-28.01%	-26.69%

Analyst Ratings

This is a breakdown of recent ratings for Prestige Consumer Healthcare and Edgewise Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prestige Consumer Healthcare	0	2	3	0	2.60
Edgewise Therapeutics	0	0	5	0	3.00

Prestige Consumer Healthcare presently has a consensus price target of $94.20, suggesting a potential upside of 17.21%. Edgewise Therapeutics has a consensus price target of $38.40, suggesting a potential upside of 5.55%. Given Prestige Consumer Healthcare’s higher probable upside, equities analysts clearly believe Prestige Consumer Healthcare is more favorable than Edgewise Therapeutics.

Institutional & Insider Ownership

99.9% of Prestige Consumer Healthcare shares are owned by institutional investors. 1.6% of Prestige Consumer Healthcare shares are owned by company insiders. Comparatively, 24.1% of Edgewise Therapeutics shares are owned by company 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.

Valuation and Earnings

This table compares Prestige Consumer Healthcare and Edgewise Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prestige Consumer Healthcare	$1.11 billion	3.58	$209.34 million	$4.11	19.55
Edgewise Therapeutics	N/A	N/A	-$100.16 million	($1.55)	-23.47

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

Risk and Volatility

Prestige Consumer Healthcare has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Edgewise Therapeutics has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500.

Summary

Prestige Consumer Healthcare beats Edgewise Therapeutics on 10 of the 13 factors compared between the two stocks.

About Prestige Consumer Healthcare

Prestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) health and personal care products in the United States and internationally. The company operates in two segments, North American OTC Healthcare and International OTC Healthcare. It offers BC/Goody's analgesic powders, Boudreaux's Butt Paste baby ointments, Chloraseptic sore throat liquids and lozenges, Clear Eyes for eye redness relief, Compound W wart removals, DenTek for PEG oral care, Debrox ear wax removals, and Dramamine for motion sickness relief. The company also provides Fleet adult enemas/suppositories, Gaviscon upset stomach remedies, Luden's cough drops, Monistat vaginal anti-fungal, Nix lice/parasite treatments, Summer's Eve feminine hygiene, TheraTears dry eye relief, Fess nasal saline spray and washes, and Hydralyte for oral rehydration products. It sells its products through mass merchandisers; and drug, food, dollar, convenience, and club stores, as well as e-commerce channels. The company was formerly known as Prestige Brands Holdings, Inc. and changed its name to Prestige Consumer Healthcare Inc. in August 2018. Prestige Consumer Healthcare Inc. was founded in 1996 and is headquartered in Tarrytown, New York.

About Edgewise Therapeutics

Edgewise Therapeutics, Inc., a biopharmaceutical company, discovers, develops, and commercializes therapies for the treatment of muscle disorders. Its lead product candidate, EDG-5506, an orally administered small molecule that is in Phase II clinical trials, designed to address the root cause of dystrophinopathies including Duchenne muscular dystrophy and Becker muscular dystrophy. The company develops EDG-7500, a small molecule for the treatment of hypertrophic cardiomyopathy and other severe cardiac disorders that is in Phase I clinical trials. In addition, it develops a pipeline of precision medicine product candidates that target key muscle proteins and modulators to address genetically defined muscle disorders. Edgewise Therapeutics, Inc. was incorporated in 2017 and is headquartered in Boulder, Colorado.