Intra-Cellular Therapies (NASDAQ:ITCI) vs. Prelude Therapeutics (NASDAQ:PRLD) Critical Comparison

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

Risk & Volatility

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

Insider & Institutional Ownership

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Intra-Cellular Therapies and Prelude Therapeutics, as reported by MarketBeat.com.

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

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

Profitability

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

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

Earnings & Valuation

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

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

Prelude Therapeutics has lower revenue, but higher earnings 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.

Summary

Intra-Cellular Therapies beats Prelude Therapeutics on 8 of the 13 factors compared between the two stocks.

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.

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.