Contrasting Allakos (NASDAQ:ALLK) and Oramed Pharmaceuticals (NASDAQ:ORMP)

Allakos (NASDAQ:ALLKGet Free Report) and Oramed Pharmaceuticals (NASDAQ:ORMPGet Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Risk and Volatility

Allakos has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Oramed Pharmaceuticals has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.

Profitability

This table compares Allakos and Oramed Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allakos N/A -123.58% -82.95%
Oramed Pharmaceuticals N/A 2.70% 2.10%

Insider and Institutional Ownership

84.6% of Allakos shares are held by institutional investors. Comparatively, 12.7% of Oramed Pharmaceuticals shares are held by institutional investors. 16.1% of Allakos shares are held by insiders. Comparatively, 13.7% of Oramed Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Allakos and Oramed Pharmaceuticals”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allakos N/A N/A -$185.70 million ($2.34) -0.28
Oramed Pharmaceuticals $1.34 million 72.41 $5.53 million $0.51 4.67

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Allakos and Oramed Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allakos 1 2 2 0 2.20
Oramed Pharmaceuticals 0 1 0 0 2.00

Allakos presently has a consensus price target of $1.67, indicating a potential upside of 155.82%. Given Allakos’ stronger consensus rating and higher possible upside, analysts clearly believe Allakos is more favorable than Oramed Pharmaceuticals.

Summary

Oramed Pharmaceuticals beats Allakos on 7 of the 12 factors compared between the two stocks.

About Allakos

(Get Free Report)

Allakos Inc., a clinical stage biotechnology company, develops therapeutics that target immunomodulatory receptors present on immune effector cells in allergy, inflammatory, and proliferative diseases in the United States. The company’s lead product candidate is AK006, which in a Phase I clinical trial for the treatment of chronic spontaneous urticaria (CSU) and other indications. The company was incorporated in 2012 and is headquartered in San Carlos, California.

About Oramed Pharmaceuticals

(Get Free Report)

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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