Omega Therapeutics (NASDAQ:OMGA – Get Free Report) and Sutro Biopharma (NASDAQ:STRO – Get Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.
Volatility & Risk
Omega Therapeutics has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, Sutro Biopharma has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.
Valuation & Earnings
This table compares Omega Therapeutics and Sutro Biopharma’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Omega Therapeutics | $3.09 million | 39.98 | -$97.43 million | ($1.67) | -1.34 |
| Sutro Biopharma | $153.73 million | 1.55 | -$106.79 million | ($1.88) | -1.55 |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Omega Therapeutics and Sutro Biopharma, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Omega Therapeutics | 0 | 0 | 5 | 0 | 3.00 |
| Sutro Biopharma | 0 | 0 | 8 | 0 | 3.00 |
Omega Therapeutics currently has a consensus price target of $10.40, indicating a potential upside of 364.29%. Sutro Biopharma has a consensus price target of $12.50, indicating a potential upside of 328.08%. Given Omega Therapeutics’ higher possible upside, equities research analysts plainly believe Omega Therapeutics is more favorable than Sutro Biopharma.
Profitability
This table compares Omega Therapeutics and Sutro Biopharma’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Omega Therapeutics | -1,868.35% | -136.04% | -44.21% |
| Sutro Biopharma | -74.61% | -94.18% | -27.38% |
Institutional & Insider Ownership
97.5% of Omega Therapeutics shares are held by institutional investors. Comparatively, 97.0% of Sutro Biopharma shares are held by institutional investors. 57.0% of Omega Therapeutics shares are held by company insiders. Comparatively, 5.9% of Sutro Biopharma shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Omega Therapeutics beats Sutro Biopharma on 8 of the 13 factors compared between the two stocks.
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.
About Sutro Biopharma
Sutro Biopharma, Inc. operates as a clinical-stage oncology company. The company develops site-specific and novel-format antibody drug conjugates (ADCs) that enables its proprietary integrated cell-free protein synthesis platform, XpressCF and XpressCF+. Its product candidates include STRO-002, an ADC directed against folate receptor-alpha, which is in Phase II/III clinical trials for patients with ovarian and endometrial cancers; VAX-24 and Vax-31 pneumococcal conjugate vaccine candidates that is in Phase II/III clinical trials for the treatment of invasive pneumococcal disease; and MK-1484, a distinct cytokine derivative molecule that is in Phase I clinical study for the treatment of cancer. The company's pre-clinical product candidates include STRO-003, an ADC directed against an anti-receptor tyrosine kinase-like orphan receptor 1 (ROR1) for the treatment of solid tumors and hematological cancers; and STRO-004, a tissue factor (TF) targeting ADC for the treatment of TF-expressing solid tumors, including cervical, lung, and breast cancer. Sutro Biopharma, Inc. has collaboration and license agreements with Merck Sharp & Dohme Corporation to develop research programs focusing on cytokine derivatives for cancer and autoimmune disorders; Vaxcyte to discover and develop vaccine candidates for the treatment or prophylaxis of infectious diseases; Tasly Biopharmaceuticals Co., Ltd. to develop and commercialize STRO-002 in Greater China; EMD Serono to develop ADCs for multiple cancer targets; and Astellas Pharma Inc. to develop immunostimulatory ADC. The company was formerly known as Fundamental Applied Biology, Inc. Sutro Biopharma, Inc. was incorporated in 2003 and is headquartered in South San Francisco, California.
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