Veru (NASDAQ:VERU – Get Free Report) and Oramed Pharmaceuticals (NASDAQ:ORMP – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.
Profitability
This table compares Veru and Oramed Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Veru | N/A | -54.72% | -39.09% |
| Oramed Pharmaceuticals | N/A | -5.37% | -4.83% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Veru and Oramed Pharmaceuticals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Veru | 1 | 0 | 3 | 0 | 2.50 |
| Oramed Pharmaceuticals | 0 | 1 | 0 | 0 | 2.00 |
Insider and Institutional Ownership
47.2% of Veru shares are held by institutional investors. Comparatively, 12.7% of Oramed Pharmaceuticals shares are held by institutional investors. 14.2% of Veru shares are held by insiders. Comparatively, 17.8% of Oramed Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Veru and Oramed Pharmaceuticals”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Veru | $16.89 million | 2.25 | -$22.73 million | ($0.89) | -2.66 |
| Oramed Pharmaceuticals | $2.00 million | 81.25 | $64.05 million | $2.59 | 1.53 |
Oramed Pharmaceuticals has lower revenue, but higher earnings than Veru. Veru is trading at a lower price-to-earnings ratio than Oramed Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Veru has a beta of -1.19, indicating that its share price is 219% less volatile than the S&P 500. Comparatively, Oramed Pharmaceuticals has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.
Summary
Oramed Pharmaceuticals beats Veru on 8 of the 13 factors compared between the two stocks.
About Veru
Veru Inc., a late clinical stage biopharmaceutical company, focuses on developing medicines for treatment of metabolic diseases, oncology, and acute respiratory distress syndrome (ARDS). Its marketed products comprise FC2 female condom for the dual protection against unplanned pregnancy and the transmission of sexually transmitted infections. The company’s development program includes enobosarm, a selective androgen receptor modulator for treatment of augment fat loss and to prevent muscle loss in sarcopenic obese and overweight elderly patients; Enobosarm, a selective androgen receptor modulator for the treatment of AR+ ER+ HER2- metastatic breast cancer; and sabizabulin, a microtubule disruptor for the treatment of hospitalized patients with viral lung infection on oxygen support who are at high risk for viral induced ARDS and death. The company was formerly known as The Female Health Company and changed its name to Veru Inc. in July 2017. Veru Inc. was incorporated in 1971 and is headquartered in Miami, Florida.
About Oramed Pharmaceuticals
Oramed Pharmaceuticals Inc. engages in the research and development of pharmaceutical solutions for the treatment of diabetes and for the use of orally ingestible capsules for delivery of polypeptides. The company's product portfolio includes ORMD-0801, an oral insulin capsule, which is in phase III clinical trial for the treatment of individuals with diabetes, as well as in phase II clinical trial for the treatment of non-alcoholic steatohepatitis; and ORA-D-013-1 and ORA-D-013-2, which have completed phase II clinical trial for the treatment of type 2 diabetes. It has license agreements with Oravax Medical Inc. to commercialize oral vaccines for COVID-19 and other novel coronaviruses. Oramed Pharmaceuticals Inc. was incorporated in 2002 and is headquartered in New York.
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