Omeros (NASDAQ:OMER) and Flora Growth (NASDAQ:FLGC) Financial Analysis

Flora Growth (NASDAQ:FLGC) and Omeros (NASDAQ:OMER) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Flora Growth and Omeros, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flora Growth	1	0	1	0	2.00
Omeros	1	1	2	1	2.60

Flora Growth currently has a consensus price target of $30.00, suggesting a potential upside of 191.83%. Omeros has a consensus price target of $40.33, suggesting a potential upside of 259.16%. Given Omeros’ stronger consensus rating and higher probable upside, analysts plainly believe Omeros is more favorable than Flora Growth.

Insider and Institutional Ownership

36.0% of Flora Growth shares are held by institutional investors. Comparatively, 48.8% of Omeros shares are held by institutional investors. 2.3% of Flora Growth shares are held by company insiders. Comparatively, 12.9% of Omeros shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Flora Growth and Omeros’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flora Growth	-32.03%	-64.02%	-34.46%
Omeros	N/A	N/A	-52.38%

Volatility & Risk

Flora Growth has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500. Comparatively, Omeros has a beta of 2.44, meaning that its stock price is 144% more volatile than the S&P 500.

Earnings & Valuation

This table compares Flora Growth and Omeros”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flora Growth	$57.61 million	0.19	-$15.91 million	($32.49)	-0.32
Omeros	N/A	N/A	-$156.82 million	($2.02)	-5.56

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

Summary

Omeros beats Flora Growth on 10 of the 14 factors compared between the two stocks.

About Flora Growth

Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products worldwide. It operates through three segments: House of Brands, Commercial and Wholesale, and Pharmaceuticals. The company cultivates, processes, and supplies medicinal-grade cannabis flower, and cannabis derived medical and wellness products. It also offers food and beverage, nutraceuticals, cannabis accessories and technology, personal care, and wellness; cannabidiol (CBD) derived products, such as gummies, topicals, tinctures, and vape products; cannabis consumption accessories, personal storage, and travel accessories for the vape and dry herbs. In addition, the company manufactures and distributes pharmaceutical goods and medical cannabis products to treat a variety of health indications, including drugs related to cancer therapies, attention-deficit/hyperactivity disorder, multiple sclerosis, and anti-depressants. The company sells its products under the JustCBD, Vessel, and Phatebo brands. Flora Growth Corp. was incorporated in 2019 and is based in Fort Lauderdale, Florida.

About Omeros

Omeros Corporation, a clinical-stage biopharmaceutical company, discovers, develops, and commercializes small-molecule and protein therapeutics, and orphan indications targeting immunologic diseases, including complement-mediated diseases, cancers, and addictive and compulsive disorders. The company’s products under development include Narsoplimab (OMS721/MASP-2) that has completed pivotal trial for hematopoietic stem-cell transplant-associated thrombotic microangiopathy (TA-TMA); that is in Phase III clinical trial for the treatment of 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 has completed phase II clinical trials for Paroxysmal nocturnal hemoglobinuria, complement 3 glomerulopathy, and other alternative pathway disorders; and OMS527 that is in phase I clinical trials for addictions and compulsive disorders, and movement disorders. In addition, the company’s products under preclinical development comprise MASP-2, a pro-inflammatory protein target for the treatment of lectin pathway disorders; MASP-3 small-molecule inhibitors for alternative pathway disorders; and Adoptive T-Cell and Chimeric Antigen Receptor (CAR) T-Cell Therapies and Immunomodulators/Immunotoxins/Cancer Vaccines for the treatment of various cancers. Omeros Corporation was incorporated in 1994 and is headquartered in Seattle, Washington.