Oramed Pharmaceuticals (NASDAQ:ORMP) and Enanta Pharmaceuticals (NASDAQ:ENTA) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.
Profitability
This table compares Oramed Pharmaceuticals and Enanta Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Oramed Pharmaceuticals | -424.76% | -45.93% | -30.33% |
| Enanta Pharmaceuticals | -29.53% | -3.75% | -3.53% |
Valuation and Earnings
This table compares Oramed Pharmaceuticals and Enanta Pharmaceuticals' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Oramed Pharmaceuticals | $2.71 million | 96.56 | $-11,510,000.00 | ($0.56) | -15.91 |
| Enanta Pharmaceuticals | $122.47 million | 8.12 | $-36,170,000.00 | ($0.89) | -55.42 |
Oramed Pharmaceuticals has higher earnings, but lower revenue than Enanta Pharmaceuticals. Enanta Pharmaceuticals is trading at a lower price-to-earnings ratio than Oramed Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
6.0% of Oramed Pharmaceuticals shares are owned by institutional investors. Comparatively, 90.8% of Enanta Pharmaceuticals shares are owned by institutional investors. 16.1% of Oramed Pharmaceuticals shares are owned by insiders. Comparatively, 10.9% of Enanta Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk & Volatility
Oramed Pharmaceuticals has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, Enanta Pharmaceuticals has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Oramed Pharmaceuticals and Enanta Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Oramed Pharmaceuticals | 0 | 0 | 4 | 0 | 3.00 |
| Enanta Pharmaceuticals | 1 | 3 | 4 | 0 | 2.38 |
Oramed Pharmaceuticals currently has a consensus target price of $13.3333, indicating a potential upside of 49.64%. Enanta Pharmaceuticals has a consensus target price of $64.6250, indicating a potential upside of 31.03%. Given Oramed Pharmaceuticals' stronger consensus rating and higher probable upside, research analysts clearly believe Oramed Pharmaceuticals is more favorable than Enanta Pharmaceuticals.
Summary
Oramed Pharmaceuticals beats Enanta Pharmaceuticals on 8 of the 13 factors compared between the two stocks.
