Omeros (NASDAQ:OMER) vs. Veru (NASDAQ:VERU) Head-To-Head Contrast

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

Analyst Recommendations

This is a summary of current ratings for Omeros and Veru, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omeros	1	2	2	1	2.50
Veru	1	0	3	0	2.50

Omeros presently has a consensus target price of $38.00, suggesting a potential upside of 292.16%. Veru has a consensus target price of $23.00, suggesting a potential upside of 866.39%. Given Veru’s higher probable upside, analysts plainly believe Veru is more favorable than Omeros.

Volatility & Risk

Omeros has a beta of 2.55, indicating that its stock price is 155% more volatile than the S&P 500. Comparatively, Veru has a beta of -1.19, indicating that its stock price is 219% less volatile than the S&P 500.

Profitability

This table compares Omeros and Veru’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omeros	N/A	-102.16%	64.87%
Veru	N/A	-54.72%	-39.09%

Insider and Institutional Ownership

48.8% of Omeros shares are held by institutional investors. Comparatively, 47.2% of Veru shares are held by institutional investors. 10.5% of Omeros shares are held by insiders. Comparatively, 14.2% of Veru shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Omeros and Veru”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omeros	N/A	N/A	-$3.35 million	$0.70	13.84
Veru	N/A	N/A	-$22.73 million	($0.89)	-2.67

Veru is trading at a lower price-to-earnings ratio than Omeros, indicating that it is currently the more affordable of the two stocks.

Summary

Omeros beats Veru on 7 of the 11 factors compared between the two stocks.

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.

About Veru

Veru Inc., a late clinical stage biopharmaceutical company, focuses on developing medicines for treatment of metabolic diseases, oncology, and acute respiratory distress syndrome (ARDS). Its marketed products comprise FC2 female condom for the dual protection against unplanned pregnancy and the transmission of sexually transmitted infections. The company’s development program includes enobosarm, a selective androgen receptor modulator for treatment of augment fat loss and to prevent muscle loss in sarcopenic obese and overweight elderly patients; Enobosarm, a selective androgen receptor modulator for the treatment of AR+ ER+ HER2- metastatic breast cancer; and sabizabulin, a microtubule disruptor for the treatment of hospitalized patients with viral lung infection on oxygen support who are at high risk for viral induced ARDS and death. The company was formerly known as The Female Health Company and changed its name to Veru Inc. in July 2017. Veru Inc. was incorporated in 1971 and is headquartered in Miami, Florida.