ImmunoGen (NASDAQ: IMGN) and Oramed Pharmaceuticals (NASDAQ:ORMP) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitabiliy, analyst recommendations, dividends, institutional ownership and risk.

Volatility and Risk

ImmunoGen has a beta of 2.45, suggesting that its stock price is 145% more volatile than the S&P 500. Comparatively, Oramed Pharmaceuticals has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for ImmunoGen and Oramed Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ImmunoGen 1 3 5 0 2.44
Oramed Pharmaceuticals 0 0 2 0 3.00

ImmunoGen presently has a consensus price target of $6.61, suggesting a potential downside of 10.13%. Oramed Pharmaceuticals has a consensus price target of $25.00, suggesting a potential upside of 201.57%. Given Oramed Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Oramed Pharmaceuticals is more favorable than ImmunoGen.

Profitability

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

Net Margins Return on Equity Return on Assets
ImmunoGen -244.76% N/A -60.22%
Oramed Pharmaceuticals N/A -52.64% -29.04%

Institutional and Insider Ownership

73.9% of ImmunoGen shares are owned by institutional investors. Comparatively, 1.2% of Oramed Pharmaceuticals shares are owned by institutional investors. 6.5% of ImmunoGen shares are owned by company insiders. Comparatively, 25.9% of Oramed Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares ImmunoGen and Oramed Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ImmunoGen $51.80 million 12.70 -$104.78 million ($1.61) -4.57
Oramed Pharmaceuticals $2.19 million 50.42 -$11.45 million ($0.96) -8.64

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

Summary

Oramed Pharmaceuticals beats ImmunoGen on 8 of the 13 factors compared between the two stocks.

About ImmunoGen

ImmunoGen, Inc. is a clinical-stage biotechnology company that develops targeted cancer therapeutics using its antibody-drug conjugate (ADC) technology. The Company is engaged in the discovery of monoclonal antibody-based anticancer therapeutics. An ADC with the Company’s technology comprises an antibody that binds to a target found on tumor cells conjugated to one of its anti-cancer agents as a payload to kill the tumor cell once the ADC has bound to its target. Its product candidates include Mirvetuximab soravtansine; IMGN779; IMGN632; IMGN529, and Coltuximab ravtansine. Its portfolio is led by Mirvetuximab soravtansine, a first-in-class ADC targeting folate-receptor alpha (Fra). Its FORWARD II consists of cohorts assessing Mirvetuximab soravtansine in combination with, in separate doublets, Avastin (bevacizumab), pegylated liposomal doxorubicin (PLD), and carboplatin. The Company has developed tubulin-acting maytansinoid payload agents, which include DM1 and DM4.

About Oramed Pharmaceuticals

Oramed Pharmaceuticals Inc. (Oramed) is engaged in the field of oral delivery solutions for drugs and vaccines presently delivered via injection. Oramed’s flagship product, an orally ingestible insulin capsule in phase II clinical trials, is focused on the treatment of diabetes. The Company is developing orally ingestible protein oral delivery (POD) technology for the delivery of drugs presently administered by way of injection. Oramed’s delivery platform protects protein sand enhances their absorption, allowing them to reach the blood stream through the portal vein. The Company’s products include ORMD-0801, Oral insulin capsule; ORMD 0901, Oral Exenatide capsule; and combination therapy of ORMD 0801 + ORMD 0901. ORMD-0801 is under phase II A clinical trials. ORMD-0901 is under preclinical/Investigational New Drug (IND) stage under phase I B.

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