Critical Survey: Corcept Therapeutics (NASDAQ:CORT) versus OmniAb (NASDAQ:OABI)

Corcept Therapeutics (NASDAQ:CORT) and OmniAb (NASDAQ:OABI) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Profitability

This table compares Corcept Therapeutics and OmniAb’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corcept Therapeutics	12.96%	15.19%	11.93%
OmniAb	-347.04%	-23.99%	-21.37%

Institutional and Insider Ownership

93.6% of Corcept Therapeutics shares are held by institutional investors. Comparatively, 72.1% of OmniAb shares are held by institutional investors. 20.8% of Corcept Therapeutics shares are held by insiders. Comparatively, 8.6% of OmniAb shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Corcept Therapeutics and OmniAb”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corcept Therapeutics	$761.41 million	6.45	$99.65 million	$0.82	56.29
OmniAb	$18.67 million	12.72	-$64.78 million	($0.57)	-2.88

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

Risk & Volatility

Corcept Therapeutics has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500. Comparatively, OmniAb has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Corcept Therapeutics and OmniAb, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corcept Therapeutics	1	3	3	1	2.50
OmniAb	1	0	2	0	2.33

Corcept Therapeutics presently has a consensus target price of $77.67, suggesting a potential upside of 68.26%. OmniAb has a consensus target price of $4.50, suggesting a potential upside of 174.39%. Given OmniAb’s higher probable upside, analysts plainly believe OmniAb is more favorable than Corcept Therapeutics.

Summary

Corcept Therapeutics beats OmniAb on 13 of the 15 factors compared between the two stocks.

About Corcept Therapeutics

Corcept Therapeutics Incorporated engages in discovery and development of drugs for the treatment of severe endocrinologic, oncologic, metabolic, and neurologic disorders in the United States. It offers Korlym tablets medication for the treatment of hyperglycemia secondary to hypercortisolism in adult patients with endogenous cushing's syndrome; and who have type 2 diabetes mellitus or glucose intolerance and have failed surgery or are not candidates for surgery. The company is also developing relacorilant, which is in phase III clinical trial for the treatment of cushing's syndrome; treatment for adrenal cancer and cortisol excess which is in phase 1b clinical trial; treatment for prostate cancer which is in phase II clinical trial; and nab-paclitaxel in combination with relacorilant, which is in phase III clinical trial to treat platinum-resistant ovarian tumors. In addition, it develops dazucorilant, which is in phase II clinical trial for the treatment of amyotrophic lateral sclerosis; miricorilant, which is in phase IIb trial for the treatment of nonalcoholic steatohepatitis; and treatment for antipsychotic induced weight gain that is in phase I trial. The company was incorporated in 1998 and is headquartered in Menlo Park, California.

About OmniAb

OmniAb, Inc., a biotechnology company, engages in the discovery and provision of therapeutic antibody discovery technologies in the United States. The company's technology platform creates and screens diverse antibody repertoires and identify optimal antibodies for partners' drug development efforts. Its OmniAb platform is the biological intelligence of proprietary transgenic animals, including OmniRat, OmniChicken, and OmniMouse that have been genetically modified to generate antibodies with human sequences to facilitate development of human therapeutic candidates. The company's OmniFlic, a bispecific rat, and OmniClic, a bispecific chicken, designed for discovery of bispecific antibody applications; OmniTaur, which provides unique structural characteristics of cow antibodies for complex targets; and OmniDeep, a suite of in silico, an AI and machine learning tools for therapeutic discovery and optimization through various technologies and capabilities. OmniAb, Inc. was founded in 2012 and is headquartered in Emeryville, California.