Financial Analysis: Telesis Bio (NASDAQ:TBIO) vs. OmniAb (NASDAQ:OABI)

Telesis Bio (NASDAQ:TBIO) and OmniAb (NASDAQ:OABI) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares Telesis Bio and OmniAb’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telesis Bio	-336.59%	N/A	-61.89%
OmniAb	-115.12%	-16.59%	-14.82%

Risk & Volatility

Telesis Bio has a beta of 2.45, indicating that its stock price is 145% more volatile than the S&P 500. Comparatively, OmniAb has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Insider and Institutional Ownership

37.6% of Telesis Bio shares are held by institutional investors. Comparatively, 72.1% of OmniAb shares are held by institutional investors. 24.5% of Telesis Bio shares are held by company insiders. Comparatively, 9.8% of OmniAb shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Telesis Bio and OmniAb”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telesis Bio	$225.09 million	0.00	-$47.72 million	($20.52)	-0.00
OmniAb	$18.67 million	32.69	-$64.78 million	($0.36)	-11.71

Telesis Bio has higher revenue and earnings than OmniAb. OmniAb is trading at a lower price-to-earnings ratio than Telesis Bio, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Telesis Bio and OmniAb, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telesis Bio	0	0	0	0	0.00
OmniAb	1	0	2	0	2.33

OmniAb has a consensus target price of $11.00, suggesting a potential upside of 160.97%. Given OmniAb’s stronger consensus rating and higher possible upside, analysts plainly believe OmniAb is more favorable than Telesis Bio.

Summary

OmniAb beats Telesis Bio on 8 of the 14 factors compared between the two stocks.

About Telesis Bio

Telesis Bio, Inc., a synthetic biology company, manufactures and sells synthetic biology instruments, reagents, and associated products and related services, primarily to pharmaceutical and academic laboratories worldwide. The company offers BioXp 3250 system and BioXp 9600 system that empower researchers to go from a digital DNA sequence to endpoint-ready synthetic deoxyribonucleic acid (DNA) and messenger ribonucleic acid (mRNA) with onboard next generation sequencing (NGS) library preparation; BioXp portal, an online portal that offers an intuitive guided workflow and design tools for building new DNA sequences and assembling them into vectors of choice, as well as mRNA constructs; and BioXp De Novo kits, which contains building blocks and reagents, including proprietary Gibson assembly branded reagents for specific synthetic biology workflow applications. It also provides BioXp Select kits that offers to use non-telesis bio DNA while using the BioXp system to perform synthetic biology workflow applications, such as cloning, mRNA generation from plasmid, and cell free amplification; BioXp Next Generation Sequencing kits, which contains reagents to go from DNA or RNA to a sequencer-ready library; Benchtop reagents that contains the reagents to proceed specific synthetic biology workflow on the benchtop using products generated on the BioXp system; and custom Gibson short oligo ligation assembly enzymatic DNA synthesis solutions, which is designed to construct synthetic DNA, RNA, and proteins for development of mRNA-based vaccines, diagnostics, therapeutics, and personalized medicines. The company serves its products to government institutions, contract research organizations, and synthetic biology companies. The company was formerly known as Codex DNA, Inc. and changed its name to Telesis Bio Inc. in November 2022. Telesis Bio, Inc. was incorporated in 2011 and is headquartered in San Diego, California.

About OmniAb

OmniAb, Inc., a biotechnology company, engages in the discovery and provision of therapeutic antibody discovery technologies in the United States. The company's technology platform creates and screens diverse antibody repertoires and identify optimal antibodies for partners' drug development efforts. Its OmniAb platform is the biological intelligence of proprietary transgenic animals, including OmniRat, OmniChicken, and OmniMouse that have been genetically modified to generate antibodies with human sequences to facilitate development of human therapeutic candidates. The company's OmniFlic, a bispecific rat, and OmniClic, a bispecific chicken, designed for discovery of bispecific antibody applications; OmniTaur, which provides unique structural characteristics of cow antibodies for complex targets; and OmniDeep, a suite of in silico, an AI and machine learning tools for therapeutic discovery and optimization through various technologies and capabilities. OmniAb, Inc. was founded in 2012 and is headquartered in Emeryville, California.