Financial Contrast: Iterum Therapeutics (NASDAQ:ITRM) & OmniAb (NASDAQ:OABI)

Iterum Therapeutics (NASDAQ:ITRM) and OmniAb (NASDAQ:OABI) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Volatility & Risk

Iterum Therapeutics has a beta of 2.96, meaning that its share price is 196% more volatile than the S&P 500. Comparatively, OmniAb has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Iterum Therapeutics	N/A	N/A	-65.54%
OmniAb	-187.59%	-20.31%	-18.10%

Earnings & Valuation

This table compares Iterum Therapeutics and OmniAb”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iterum Therapeutics	$390,000.00	4.10	-$24.77 million	($0.75)	-0.04
OmniAb	$18.67 million	17.95	-$64.78 million	($0.46)	-5.03

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

Insider and Institutional Ownership

9.2% of Iterum Therapeutics shares are held by institutional investors. Comparatively, 72.1% of OmniAb shares are held by institutional investors. 2.0% of Iterum Therapeutics shares are held by insiders. Comparatively, 9.8% of OmniAb shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Iterum Therapeutics and OmniAb, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iterum Therapeutics	1	2	0	0	1.67
OmniAb	1	0	2	0	2.33

OmniAb has a consensus target price of $3.00, suggesting a potential upside of 29.59%. Given OmniAb’s stronger consensus rating and higher probable upside, analysts plainly believe OmniAb is more favorable than Iterum Therapeutics.

Summary

OmniAb beats Iterum Therapeutics on 9 of the 14 factors compared between the two stocks.

About Iterum Therapeutics

Iterum Therapeutics plc, a clinical-stage pharmaceutical company, engages in developing and commercializing anti-infectives in Ireland, Bermuda, and the United States. It is developing sulopenem, a novel anti-infective compound with oral and intravenous formulations that is in Phase III clinical trials for the treatment of uncomplicated urinary tract infections, complicated urinary tract infections, and complicated intra-abdominal infections. The company was incorporated in 2015 and is headquartered in Dublin, Ireland.

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.