Zura Bio (NASDAQ:ZURA – Get Free Report) and Omega Therapeutics (NASDAQ:OMGA – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.
Institutional and Insider Ownership
61.1% of Zura Bio shares are owned by institutional investors. Comparatively, 97.5% of Omega Therapeutics shares are owned by institutional investors. 15.8% of Zura Bio shares are owned by company insiders. Comparatively, 57.0% of Omega Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Zura Bio has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, Omega Therapeutics has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zura Bio | 0 | 1 | 3 | 0 | 2.75 |
| Omega Therapeutics | 0 | 0 | 5 | 0 | 3.00 |
Zura Bio currently has a consensus target price of $17.33, indicating a potential upside of 254.46%. Omega Therapeutics has a consensus target price of $10.20, indicating a potential upside of 880.77%. Given Omega Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Omega Therapeutics is more favorable than Zura Bio.
Valuation and Earnings
This table compares Zura Bio and Omega Therapeutics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zura Bio | N/A | N/A | -$69.24 million | N/A | N/A |
| Omega Therapeutics | $6.31 million | 9.08 | -$97.43 million | ($1.67) | -0.62 |
Zura Bio has higher earnings, but lower revenue than Omega Therapeutics.
Profitability
This table compares Zura Bio and Omega Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zura Bio | N/A | -28.83% | -22.91% |
| Omega Therapeutics | -1,249.54% | -156.48% | -40.77% |
Summary
Omega Therapeutics beats Zura Bio on 7 of the 11 factors compared between the two stocks.
About Zura Bio
Zura Bio Limited, a clinical-stage biotechnology company, focuses on developing novel medicines for immune and inflammatory disorders. It develops Tibulizumab, an IgG-scFv bispecific dual-antagonist antibody engineered by the fusion of ixekizumab and tabalumab that neutralizes IL-17A and BAFF, which is in Phase 2 clinical trial development; ZB-168, a monoclonal antibody that binds and neutralizes the IL-7 receptor chain that impact on diseases driven by IL7 and thymic stromal lymphopoietin immune pathways; and Torudokimab, a monoclonal antibody that neutralizes IL33, which is in Phase 2 clinical trial development. The company is based in Henderson, Nevada.
About Omega Therapeutics
Omega Therapeutics, Inc. operates as a clinical-stage biotechnology company. The company's OMEGA platform enables control of fundamental epigenetic processes to correct the root cause of disease by restoring aberrant gene expression to a range without altering native nucleic acid sequences. It also develops OTX-2002 for hepatocellular carcinoma; OTX-2101 for non-small cell lung cancer; omega epigenomic controllers (OEC) for inflammatory lung diseases, such as neutrophilic asthma, acute respiratory distress syndrome, dermatological, oncology, and rheumatological indications; OEC candidates for idiopathic pulmonary fibrosis; liver regeneration medicines; and OEC candidates for patients with diabetes and other conditions to treat corneal epithelial injury. In addition, the company develops OEC candidates for the treatment of alopecia, a disorder characterized by patches of non-scarring hair loss affecting the scalp and body. Omega Therapeutics, Inc. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.
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