Financial Comparison: Surrozen (NASDAQ:SRZN) and Omega Therapeutics (NASDAQ:OMGA)

Omega Therapeutics (NASDAQ:OMGA) and Surrozen (NASDAQ:SRZN) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Valuation & Earnings

This table compares Omega Therapeutics and Surrozen”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Therapeutics	$8.10 million	0.85	-$97.43 million	($1.33)	-0.09
Surrozen	$11.64 million	6.47	-$43.04 million	($24.96)	-0.35

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

Insider & Institutional Ownership

97.5% of Omega Therapeutics shares are owned by institutional investors. Comparatively, 66.6% of Surrozen shares are owned by institutional investors. 8.5% of Omega Therapeutics shares are owned by company insiders. Comparatively, 45.2% of Surrozen shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omega Therapeutics	-902.93%	-213.13%	-41.24%
Surrozen	N/A	-120.51%	-54.68%

Volatility and Risk

Omega Therapeutics has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, Surrozen has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Omega Therapeutics and Surrozen, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Therapeutics	0	1	4	0	2.80
Surrozen	0	0	2	0	3.00

Omega Therapeutics currently has a consensus price target of $9.20, indicating a potential upside of 7,260.00%. Surrozen has a consensus price target of $38.50, indicating a potential upside of 337.50%. Given Omega Therapeutics’ higher possible upside, analysts plainly believe Omega Therapeutics is more favorable than Surrozen.

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 Surrozen

Surrozen, Inc., a clinical stage biotechnology company, discovers and develops drug candidates to selectively modulate the Wnt pathway for tissue repair. The company is developing antibody-based therapeutics which targets various disease areas, including diseases of the intestine, liver, retina, cornea, lung, kidney, cochlea, skin, pancreas, and central nervous system. Its products in pipeline include SZN-043, a hepatocyte-specific R-spondin mimetic bispecific fusion protein, which is in Phase 1b clinical trial for the treatment of severe liver diseases, including alcohol-associated hepatitis. The company develops SZN-413, a Fzd4 targeted bi-specific antibody for the treatment of retinal vascular associated diseases. Surrozen, Inc. has collaboration and license agreement with Boehringer Ingelheim International GmbH to research, develop, and commercialize Fzd4 bi-specific antibodies. Surrozen, Inc. is based in South San Francisco, California.