NextCure (NASDAQ:NXTC) and Omeros (NASDAQ:OMER) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.
Institutional and Insider Ownership
66.3% of NextCure shares are held by institutional investors. Comparatively, 56.6% of Omeros shares are held by institutional investors. 9.1% of NextCure shares are held by company insiders. Comparatively, 11.3% of Omeros shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares NextCure and Omeros' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| NextCure | $6.35 million | 50.33 | $-33,740,000.00 | ($2.15) | -5.40 |
| Omeros | $111.81 million | 11.15 | $-84,490,000.00 | ($0.96) | -21.06 |
NextCure has higher earnings, but lower revenue than Omeros. Omeros is trading at a lower price-to-earnings ratio than NextCure, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares NextCure and Omeros' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| NextCure | N/A | -10.00% | -9.51% |
| Omeros | -134.59% | N/A | -59.49% |
Risk and Volatility
NextCure has a beta of -0.4, suggesting that its stock price is 140% less volatile than the S&P 500. Comparatively, Omeros has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for NextCure and Omeros, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| NextCure | 1 | 4 | 3 | 0 | 2.25 |
| Omeros | 0 | 2 | 4 | 0 | 2.67 |
NextCure presently has a consensus price target of $23.3333, suggesting a potential upside of 103.61%. Omeros has a consensus price target of $23.40, suggesting a potential upside of 12.88%. Given NextCure's higher possible upside, equities research analysts clearly believe NextCure is more favorable than Omeros.
Summary
Omeros beats NextCure on 8 of the 14 factors compared between the two stocks.
