Oramed Pharmaceuticals (NASDAQ: ORMP) and Editas Medicine (NASDAQ:EDIT) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Risk and Volatility

Oramed Pharmaceuticals has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Editas Medicine has a beta of 4.85, meaning that its share price is 385% more volatile than the S&P 500.

Institutional & Insider Ownership

1.3% of Oramed Pharmaceuticals shares are owned by institutional investors. Comparatively, 69.4% of Editas Medicine shares are owned by institutional investors. 27.5% of Oramed Pharmaceuticals shares are owned by insiders. Comparatively, 19.4% of Editas Medicine shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Oramed Pharmaceuticals and Editas Medicine, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oramed Pharmaceuticals 0 0 1 0 3.00
Editas Medicine 0 5 4 0 2.44

Oramed Pharmaceuticals currently has a consensus price target of $25.00, indicating a potential upside of 135.40%. Editas Medicine has a consensus price target of $27.00, indicating a potential upside of 12.73%. Given Oramed Pharmaceuticals’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Oramed Pharmaceuticals is more favorable than Editas Medicine.

Valuation & Earnings

This table compares Oramed Pharmaceuticals and Editas Medicine’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Oramed Pharmaceuticals $2.19 million 64.60 -$11.45 million ($0.96) -11.06
Editas Medicine $5.64 million 178.81 -$114.84 million ($3.19) -7.51

Oramed Pharmaceuticals has higher revenue, but lower earnings than Editas Medicine. Oramed Pharmaceuticals is trading at a lower price-to-earnings ratio than Editas Medicine, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Oramed Pharmaceuticals and Editas Medicine’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oramed Pharmaceuticals N/A -54.96% -29.63%
Editas Medicine -2,091.36% -67.75% -38.19%

Summary

Oramed Pharmaceuticals beats Editas Medicine on 8 of the 13 factors compared between the two stocks.

Oramed Pharmaceuticals Company Profile

Oramed Pharmaceuticals Inc. (Oramed) is engaged in the field of oral delivery solutions for drugs and vaccines presently delivered via injection. Oramed’s flagship product, an orally ingestible insulin capsule in phase II clinical trials, is focused on the treatment of diabetes. The Company is developing orally ingestible protein oral delivery (POD) technology for the delivery of drugs presently administered by way of injection. Oramed’s delivery platform protects protein sand enhances their absorption, allowing them to reach the blood stream through the portal vein. The Company’s products include ORMD-0801, Oral insulin capsule; ORMD 0901, Oral Exenatide capsule; and combination therapy of ORMD 0801 + ORMD 0901. ORMD-0801 is under phase II A clinical trials. ORMD-0901 is under preclinical/Investigational New Drug (IND) stage under phase I B.

Editas Medicine Company Profile

Editas Medicine, Inc. is a genome editing company. It is engaged in treating patients with genetically defined diseases by correcting their disease-causing genes. It operates through developing and commercializing genome editing technology segment. It is developing a genome editing platform based on clustered, regularly interspaced short palindromic repeats (CRISPR) technology. CRISPR uses a protein-ribonucleic acid (RNA) complex composed of an enzyme, including either CRISPR associated protein 9 (Cas9) or CRISPR from Prevotella and Francisella 1 (Cpf1), bound to a guide RNA molecule designed to recognize a particular deoxyribonucleic acid (DNA) sequence. Its platform consists of four components: nuclease engineering, delivery, control and specificity, and directed editing. Its programs include Eye Diseases, Engineered T Cell Therapies for Immuno-Oncology and additional research programs. It is developing a genome editing therapeutic for Leber Congenital Amaurosis type 10 (LCA10).

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