Head-To-Head Contrast: Omeros (NASDAQ:OMER) and Medtronic (NYSE:MDT)

Medtronic (NYSE:MDT) and Omeros (NASDAQ:OMER) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Institutional & Insider Ownership

82.1% of Medtronic shares are held by institutional investors. Comparatively, 48.8% of Omeros shares are held by institutional investors. 0.3% of Medtronic shares are held by insiders. Comparatively, 12.9% of Omeros shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Medtronic and Omeros”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medtronic	$33.54 billion	3.32	$4.66 billion	$3.59	24.12
Omeros	N/A	N/A	-$156.82 million	($0.50)	-21.80

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

Analyst Ratings

This is a breakdown of current ratings for Medtronic and Omeros, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medtronic	0	10	15	1	2.65
Omeros	1	1	2	1	2.60

Medtronic currently has a consensus price target of $109.85, suggesting a potential upside of 26.84%. Omeros has a consensus price target of $40.33, suggesting a potential upside of 270.03%. Given Omeros’ higher possible upside, analysts clearly believe Omeros is more favorable than Medtronic.

Profitability

This table compares Medtronic and Omeros’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medtronic	13.00%	14.82%	7.88%
Omeros	N/A	N/A	-52.38%

Risk & Volatility

Medtronic has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Omeros has a beta of 2.53, suggesting that its stock price is 153% more volatile than the S&P 500.

Summary

Medtronic beats Omeros on 10 of the 13 factors compared between the two stocks.

About Medtronic

Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Its Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves, surgical valve replacement and repair products, endovascular stent grafts and accessories, and transcatheter pulmonary valves; and percutaneous coronary intervention products, percutaneous angioplasty balloons, and products. The company's Medical Surgical Portfolio segment offers surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, surgical artificial intelligence and robotic-assisted surgery products, hernia mechanical devices, mesh implants, gynecology and lung products, and various therapies to treat diseases, as well as products in the fields of minimally invasive gastrointestinal and hepatologic diagnostics and therapies, patient monitoring, airway management and ventilation therapies, and renal disease. Its Neuroscience Portfolio segment offers products for spinal surgeons; neurosurgeons; neurologists; pain management specialists; anesthesiologists; orthopedic surgeons; urologists; urogynecologists; interventional radiologists; ear, nose, and throat specialists; and systems that incorporate energy surgical instruments. It also provides image-guided surgery and intra-operative imaging systems and robotic guidance systems used in robot assisted spine procedures; and therapies for vasculature in and around the brain. The company's Diabetes Operating Unit segment offers insulin pumps and consumables, continuous glucose monitoring systems, smart insulin pen systems, and consumables and supplies. The company was founded in 1949 and is headquartered in Dublin, Ireland.

About Omeros

Omeros Corporation, a clinical-stage biopharmaceutical company, discovers, develops, and commercializes small-molecule and protein therapeutics, and orphan indications targeting immunologic diseases, including complement-mediated diseases, cancers, and addictive and compulsive disorders. The company’s products under development include Narsoplimab (OMS721/MASP-2) that has completed pivotal trial for hematopoietic stem-cell transplant-associated thrombotic microangiopathy (TA-TMA); that is in Phase III clinical trial for the treatment of immunoglobulin A nephropathy (IgAN); and Phase II clinical trial to treat COVID-19. It also develops OMS1029 that is in phase I clinical trials for long-acting second-generation antibody targeting lectin pathway disorders; OMS906 that has completed phase II clinical trials for Paroxysmal nocturnal hemoglobinuria, complement 3 glomerulopathy, and other alternative pathway disorders; and OMS527 that is in phase I clinical trials for addictions and compulsive disorders, and movement disorders. In addition, the company’s products under preclinical development comprise MASP-2, a pro-inflammatory protein target for the treatment of lectin pathway disorders; MASP-3 small-molecule inhibitors for alternative pathway disorders; and Adoptive T-Cell and Chimeric Antigen Receptor (CAR) T-Cell Therapies and Immunomodulators/Immunotoxins/Cancer Vaccines for the treatment of various cancers. Omeros Corporation was incorporated in 1994 and is headquartered in Seattle, Washington.