Financial Comparison: Ayala Pharmaceuticals (NASDAQ:AYLA) & Omega Therapeutics (NASDAQ:OMGA)

Ayala Pharmaceuticals (NASDAQ:AYLAGet Rating) and Omega Therapeutics (NASDAQ:OMGAGet Rating) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Ayala Pharmaceuticals and Omega Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ayala Pharmaceuticals 1 2 2 0 2.20
Omega Therapeutics 0 1 3 0 2.75

Ayala Pharmaceuticals currently has a consensus price target of $11.50, indicating a potential upside of 2,041.13%. Omega Therapeutics has a consensus price target of $8.75, indicating a potential upside of 1.16%. Given Ayala Pharmaceuticals’ higher possible upside, analysts clearly believe Ayala Pharmaceuticals is more favorable than Omega Therapeutics.

Valuation and Earnings

This table compares Ayala Pharmaceuticals and Omega Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ayala Pharmaceuticals $3.51 million 2.27 -$40.25 million ($2.52) -0.21
Omega Therapeutics $140,000.00 2,968.74 -$68.28 million ($1.94) -4.46

Ayala Pharmaceuticals has higher revenue and earnings than Omega Therapeutics. Omega Therapeutics is trading at a lower price-to-earnings ratio than Ayala Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Ayala Pharmaceuticals has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, Omega Therapeutics has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.

Insider & Institutional Ownership

22.1% of Ayala Pharmaceuticals shares are held by institutional investors. Comparatively, 88.7% of Omega Therapeutics shares are held by institutional investors. 3.6% of Ayala Pharmaceuticals shares are held by company insiders. Comparatively, 60.0% of Omega Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Ayala Pharmaceuticals and Omega Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ayala Pharmaceuticals -2,341.69% -182.13% -139.83%
Omega Therapeutics -6,252.80% -55.11% -45.58%

Summary

Omega Therapeutics beats Ayala Pharmaceuticals on 8 of the 14 factors compared between the two stocks.

About Ayala Pharmaceuticals

(Get Rating)

Ayala Pharmaceuticals, Inc., a clinical-stage oncology company, focuses on developing and commercializing small molecule therapeutics for patients suffering from rare and aggressive cancers. The company's lead product candidate is AL101, a potent, selective, and injectable small molecule gamma secretase inhibitor (GSI) that is in Phase II clinical trial for the treatment of recurrent/metastatic adenoid cystic carcinoma for patients bearing Notch-activating mutations. It is also involved in developing AL102, a potent, selective, and oral small molecule GSI that is in Phase II/III pivotal study for the treatment of desmoid tumors. Ayala Pharmaceuticals, Inc. has a collaboration agreement with Novartis International Pharmaceutical Limited to develop AL102 for the treatment of multiple myeloma. The company was incorporated in 2017 and is headquartered in Rehovot, Israel.

About Omega Therapeutics

(Get Rating)

Omega Therapeutics, Inc. operates as a clinical-stage biotechnology company. Its OMEGA Epigenomic Programming platform harnesses the power of epigenetics, as well as the mechanism that controls gene expression and aspect of an organism's life. The company's platform enables control of fundamental epigenetic processes to correct the root cause of disease by returning aberrant gene expression to a range without altering native nucleic acid sequences. Its modular and programmable mRNA medicines, and Omega Epigenomic Controllers are designed to target specific epigenomic loci within insulated genomic domains from genome-wide DNA-sequences with single or multiple genes to treat and cure diseases through Precision Genomic Control. The company is advancing a pipeline of development candidates covering a range of disease areas, including oncology, regenerative medicine, multigenic diseases, and select monogenic diseases. The company was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.

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