Head-To-Head Review: Exelixis (NASDAQ:EXEL) & Omega Therapeutics (NASDAQ:OMGA)

Omega Therapeutics (NASDAQ:OMGA) and Exelixis (NASDAQ:EXEL) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Analyst Ratings

This is a summary of current ratings and target prices for Omega Therapeutics and Exelixis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Therapeutics	0	0	3	0	3.00
Exelixis	0	5	10	0	2.67

Omega Therapeutics presently has a consensus price target of $12.00, indicating a potential upside of 240.91%. Exelixis has a consensus price target of $26.29, indicating a potential upside of 13.45%. Given Omega Therapeutics’ stronger consensus rating and higher probable upside, equities analysts plainly believe Omega Therapeutics is more favorable than Exelixis.

Risk & Volatility

Omega Therapeutics has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500. Comparatively, Exelixis has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Profitability

This table compares Omega Therapeutics and Exelixis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omega Therapeutics	-3,802.89%	-107.79%	-57.69%
Exelixis	11.35%	8.57%	6.81%

Valuation and Earnings

This table compares Omega Therapeutics and Exelixis’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Therapeutics	$2.07 million	93.76	-$102.70 million	($2.08)	-1.69
Exelixis	$1.83 billion	3.84	$207.76 million	$0.64	36.20

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

Institutional and Insider Ownership

92.7% of Omega Therapeutics shares are held by institutional investors. Comparatively, 93.1% of Exelixis shares are held by institutional investors. 57.0% of Omega Therapeutics shares are held by company insiders. Comparatively, 2.9% of Exelixis shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Exelixis beats Omega Therapeutics on 9 of the 14 factors compared between the two stocks.

About Omega Therapeutics

Omega Therapeutics, Inc. operates as a clinical-stage biotechnology company. The company's OMEGA platform enables control of fundamental epigenetic processes to correct the root cause of disease by restoring aberrant gene expression to a range without altering native nucleic acid sequences. It also develops OTX-2002 for hepatocellular carcinoma; OTX-2101 for non-small cell lung cancer; omega epigenomic controllers (OEC) for inflammatory lung diseases, such as neutrophilic asthma, acute respiratory distress syndrome, dermatological, oncology, and rheumatological indications; OEC candidates for idiopathic pulmonary fibrosis; liver regeneration medicines; and OEC candidates for patients with diabetes and other conditions to treat corneal epithelial injury. In addition, the company develops OEC candidates for the treatment of alopecia, a disorder characterized by patches of non-scarring hair loss affecting the scalp and body. Omega Therapeutics, Inc. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.

About Exelixis

Exelixis, Inc., an oncology company, focuses on the discovery, development, and commercialization of new medicines for difficult-to-treat cancers in the United States. The company offers CABOMETYX tablets for the treatment of patients with advanced renal cell carcinoma who received prior anti-angiogenic therapy; and COMETRIQ capsules for the treatment of progressive and metastatic medullary thyroid cancer. Its CABOMETYX and COMETRIQ are derived from cabozantinib, an inhibitor of multiple tyrosine kinases, including MET, AXL, RET, and VEGF receptors. The company also offers COTELLIC, an inhibitor of MEK as a combination regimen to treat specific forms of advanced melanoma; and MINNEBRO, an oral non-steroidal selective blocker of the mineralocorticoid receptor for the treatment of hypertension in Japan. It develops zanzalintinib, a novel, potent, next-generation oral tyrosine kinase inhibitor (TKI) that targets VEGF receptors, MET and the TAM kinases (TYRO3, AXL and MER); and XB002, a next-generation tissue factor (TF)-targeting ADC, administered via intravenous infusion and composed of a human monoclonal antibody (mAb) against TF that is conjugated to an auristatin-based microtubulin inhibitor (MTI) payload. It has research collaborations and license agreements with Ipsen Pharma SAS; Takeda Pharmaceutical Company Ltd.; F. Hoffmann-La Roche Ltd.; Redwood Bioscience, Inc.; R.P. Scherer Technologies, LLC; Catalent Pharma Solutions, Inc.; NBE Therapeutics AG; Aurigene Discovery Technologies Limited; Iconic Therapeutics, Inc.; Invenra, Inc.; StemSynergy Therapeutics, Inc.; Genentech, Inc.; Bristol-Myers Squibb Company; and Daiichi Sankyo Company, Limited, as well as clinical development agreement with Sairopa B.V. for ADU-1805. The company was formerly known as Exelixis Pharmaceuticals, Inc. and changed its name to Exelixis, Inc. in February 2000. Exelixis, Inc. was incorporated in 1994 and is headquartered in Alameda, California.