OmniAb (NASDAQ:OABI) & Starpharma (OTCMKTS:SPHRY) Critical Review

Starpharma (OTCMKTS:SPHRY) and OmniAb (NASDAQ:OABI) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Volatility & Risk

Starpharma has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, OmniAb has a beta of -0.13, meaning that its share price is 113% less volatile than the S&P 500.

Institutional & Insider Ownership

72.1% of OmniAb shares are held by institutional investors. 8.6% of OmniAb shares are held by company 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.

Valuation and Earnings

This table compares Starpharma 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
Starpharma	$6.40 million	4.37	-$5.36 million	N/A	N/A
OmniAb	$21.71 million	23.94	-$50.62 million	($0.64)	-6.91

Starpharma has higher earnings, but lower revenue than OmniAb.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Starpharma and OmniAb, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Starpharma	0	0	0	0	N/A
OmniAb	0	0	4	0	3.00

OmniAb has a consensus price target of $9.00, suggesting a potential upside of 103.62%. Given OmniAb’s higher probable upside, analysts plainly believe OmniAb is more favorable than Starpharma.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Starpharma	N/A	N/A	N/A
OmniAb	-287.29%	-20.21%	-17.13%

Summary

OmniAb beats Starpharma on 6 of the 11 factors compared between the two stocks.

About Starpharma

Starpharma Holdings Limited, a biopharmaceutical company, engages in the research, development, and commercialization of dendrimer products for pharmaceutical, life-science, and other applications worldwide. The company offers VivaGel BV, a non-antibiotic vaginal gel for the treatment of bacterial vaginosis and prevention of recurrent BV; VIRALEZE, an antiviral nasal spray; and VivaGel condom, an antiviral condom. It is also involved in the development of DEP cabazitaxel that is in Phase 2 clinical trial for the treatment of prostate and other cancers, DEP docetaxel that is in Phase 2 clinical trials for the treatment of colorectal and other cancers, DEP irinotecan that is in Phase 2 clinical trials f for the treatment of pancreatic and other cancers; and EP gemcitabine, DEP HER-2 ADC, and DEP HER-2 radiotherapy completed preclinical trials for the treatment of solid cancers. In addition, the company's DEP radiotheranostics development pipeline includes DEP HER2-zirconium, a HER2-targeted radio diagnostic for HER2-positive cancers, such as breast and gastric cancer; and HER2-targeted DEP SN38 ADC, a targeted ADC therapeutic for the treatment of human ovarian cancer. Starpharma Holdings Limited was incorporated in 1997 and is headquartered in Abbotsford, Australia.

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.