Omeros (NASDAQ:OMER – Get Free Report) and Kiniksa Pharmaceuticals (NASDAQ:KNSA – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
Institutional and Insider Ownership
41.7% of Omeros shares are owned by institutional investors. Comparatively, 47.3% of Kiniksa Pharmaceuticals shares are owned by institutional investors. 10.9% of Omeros shares are owned by insiders. Comparatively, 54.2% of Kiniksa Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Omeros and Kiniksa Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Omeros||$73.81 million||2.65||$47.42 million||$0.64||4.86|
|Kiniksa Pharmaceuticals||$280.84 million||4.28||$183.36 million||$3.27||5.24|
Kiniksa Pharmaceuticals has higher revenue and earnings than Omeros. Omeros is trading at a lower price-to-earnings ratio than Kiniksa Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Omeros has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Kiniksa Pharmaceuticals has a beta of -0.09, suggesting that its stock price is 109% less volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Omeros and Kiniksa Pharmaceuticals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Omeros presently has a consensus target price of $8.00, indicating a potential upside of 157.23%. Kiniksa Pharmaceuticals has a consensus target price of $20.00, indicating a potential upside of 16.69%. Given Omeros’ higher probable upside, analysts clearly believe Omeros is more favorable than Kiniksa Pharmaceuticals.
Kiniksa Pharmaceuticals beats Omeros on 11 of the 13 factors compared between the two stocks.
Omeros Corporation, a clinical-stage biopharmaceutical company, discovers, develops, and commercializes small-molecule and protein therapeutics, and orphan indications targeting inflammation, complement-mediated diseases, cancers, and addictive and compulsive disorders. The company's clinical programs include Narsoplimab (OMS721/MASP-2) that has completed pivotal studies for hematopoietic stem-cell transplant-associated thrombotic microangiopathy (HSCT-TMA); that is in Phase III clinical trial for immunoglobulin A nephropathy (IgAN); and Phase II clinical trial to treat COVID-19. It also develops OMS1029 that is in phase I clinical trials for long-acting second-generation antibody targeting lectin pathway disorders; OMS906 that is in phase Ib clinical trials for Paroxysmal nocturnal hemoglobinuria, complement 3 glomerulopathy, and other alternative pathway disorders; OMS527 that is in phase I clinical trials for addictions and compulsive disorders, and movement disorders; and OMS405 that is in phase II clinical trials for opioid and nicotine addiction. In addition, the company develops MASP-2-small-molecule inhibitors for the treatment of aHUS, HSCT-TMA, and age-related macular degeneration; GPR174 inhibitors and chimeric antigen receptor T-Cell and adoptive T-Cell therapies for various cancers; and G protein-coupled receptors for treating immunologic, immuno-oncologic, metabolic, CNS, cardiovascular, musculoskeletal, and other disorders. Omeros Corporation was incorporated in 1994 and is headquartered in Seattle, Washington.
About Kiniksa Pharmaceuticals
Kiniksa Pharmaceuticals, Ltd., a biopharmaceutical company, focuses on discovering, acquiring, developing, and commercializing therapeutic medicines for patients suffering from debilitating diseases with significant unmet medical needs worldwide. Its product candidates include ARCALYST, an interleukin-1alpha and interleukin-1beta, for the treatment of recurrent pericarditis, which is an inflammatory cardiovascular disease; Mavrilimumab, a monoclonal antibody inhibitor that completed Phase II clinical trials for the treatment of giant cell arteritis; Vixarelimab, a monoclonal antibody, that completed Phase 2b clinical trial for the treatment of prurigo nodularis, a chronic inflammatory skin condition; and KPL-404, a monoclonal antibody inhibitor of the CD40- CD154 interaction, a T-cell co-stimulatory signal critical for B-cell maturation, immunoglobulin class switching, and type 1 immune response. Kiniksa Pharmaceuticals, Ltd. was incorporated in 2015 and is based in Hamilton, Bermuda.
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