Omega Therapeutics (NASDAQ:OMGA – Get Free Report) and Kodiak Sciences (NASDAQ:KOD – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.
Institutional and Insider Ownership
97.5% of Omega Therapeutics shares are owned by institutional investors. Comparatively, 89.1% of Kodiak Sciences shares are owned by institutional investors. 57.0% of Omega Therapeutics shares are owned by company insiders. Comparatively, 45.3% of Kodiak Sciences 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.
Profitability
This table compares Omega Therapeutics and Kodiak Sciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Omega Therapeutics | -1,868.35% | -136.04% | -44.21% |
| Kodiak Sciences | N/A | -81.11% | -45.38% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Omega Therapeutics | 0 | 0 | 5 | 0 | 3.00 |
| Kodiak Sciences | 3 | 3 | 1 | 0 | 1.71 |
Omega Therapeutics presently has a consensus target price of $10.40, indicating a potential upside of 402.42%. Kodiak Sciences has a consensus target price of $5.50, indicating a potential upside of 134.04%. Given Omega Therapeutics’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Omega Therapeutics is more favorable than Kodiak Sciences.
Risk and Volatility
Omega Therapeutics has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500. Comparatively, Kodiak Sciences has a beta of 2.43, suggesting that its share price is 143% more volatile than the S&P 500.
Earnings and Valuation
This table compares Omega Therapeutics and Kodiak Sciences’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Omega Therapeutics | $3.09 million | 36.95 | -$97.43 million | ($1.67) | -1.24 |
| Kodiak Sciences | N/A | N/A | -$260.49 million | ($4.43) | -0.53 |
Omega Therapeutics has higher revenue and earnings than Kodiak Sciences. Omega Therapeutics is trading at a lower price-to-earnings ratio than Kodiak Sciences, indicating that it is currently the more affordable of the two stocks.
Summary
Omega Therapeutics beats Kodiak Sciences on 9 of the 12 factors compared between the two stocks.
About Omega Therapeutics
Omega Therapeutics, Inc. operates as a clinical-stage biotechnology company. The company's OMEGA platform enables control of fundamental epigenetic processes to correct the root cause of disease by restoring aberrant gene expression to a range without altering native nucleic acid sequences. It also develops OTX-2002 for hepatocellular carcinoma; OTX-2101 for non-small cell lung cancer; omega epigenomic controllers (OEC) for inflammatory lung diseases, such as neutrophilic asthma, acute respiratory distress syndrome, dermatological, oncology, and rheumatological indications; OEC candidates for idiopathic pulmonary fibrosis; liver regeneration medicines; and OEC candidates for patients with diabetes and other conditions to treat corneal epithelial injury. In addition, the company develops OEC candidates for the treatment of alopecia, a disorder characterized by patches of non-scarring hair loss affecting the scalp and body. Omega Therapeutics, Inc. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.
About Kodiak Sciences
Kodiak Sciences Inc., a clinical stage biopharmaceutical company, researches, develops, and commercializes therapeutics to treat retinal diseases. Its lead product candidate is tarcocimab tedromer (KSI-301), an anti-vascular endothelial growth factor antibody biopolymer that is in Phase IIb/III clinical study to treat wet age-related macular degeneration (AMD), as well as Phase III clinical study for the treatment of diabetic macular edema, naïve macular edema due to retinal vein occlusion, and non-proliferative diabetic retinopathy. The company's preclinical stage product candidate includes KSI-501, a bispecific conjugate to treat retinal diseases with an inflammatory component; and KSI-601, a triplet biopolymer conjugate for the treatment of dry AMD. The company was formerly known as Oligasis, LLC and changed its name to Kodiak Sciences Inc. in September 2015. Kodiak Sciences Inc. was incorporated in 2009 and is based in Palo Alto, California.
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