Oramed Pharmaceuticals (NASDAQ:ORMP – Get Free Report) and Fate Therapeutics (NASDAQ:FATE – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.
Insider and Institutional Ownership
12.7% of Oramed Pharmaceuticals shares are owned by institutional investors. Comparatively, 97.5% of Fate Therapeutics shares are owned by institutional investors. 17.8% of Oramed Pharmaceuticals shares are owned by insiders. Comparatively, 4.7% of Fate Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings for Oramed Pharmaceuticals and Fate Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Oramed Pharmaceuticals | 0 | 1 | 0 | 0 | 2.00 |
| Fate Therapeutics | 1 | 3 | 3 | 0 | 2.29 |
Volatility and Risk
Oramed Pharmaceuticals has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Fate Therapeutics has a beta of 2.52, meaning that its stock price is 152% more volatile than the S&P 500.
Valuation and Earnings
This table compares Oramed Pharmaceuticals and Fate Therapeutics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Oramed Pharmaceuticals | $2.00 million | 89.44 | $64.05 million | $2.59 | 1.66 |
| Fate Therapeutics | $6.65 million | 49.08 | -$136.32 million | ($1.09) | -2.57 |
Oramed Pharmaceuticals has higher earnings, but lower revenue than Fate Therapeutics. Fate Therapeutics is trading at a lower price-to-earnings ratio than Oramed Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Oramed Pharmaceuticals and Fate Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Oramed Pharmaceuticals | N/A | -5.37% | -4.83% |
| Fate Therapeutics | -2,056.79% | -58.89% | -39.39% |
Summary
Oramed Pharmaceuticals beats Fate Therapeutics on 8 of the 14 factors compared between the two stocks.
About Oramed Pharmaceuticals
Oramed Pharmaceuticals Inc. engages in the research and development of pharmaceutical solutions for the treatment of diabetes and for the use of orally ingestible capsules for delivery of polypeptides. The company's product portfolio includes ORMD-0801, an oral insulin capsule, which is in phase III clinical trial for the treatment of individuals with diabetes, as well as in phase II clinical trial for the treatment of non-alcoholic steatohepatitis; and ORA-D-013-1 and ORA-D-013-2, which have completed phase II clinical trial for the treatment of type 2 diabetes. It has license agreements with Oravax Medical Inc. to commercialize oral vaccines for COVID-19 and other novel coronaviruses. Oramed Pharmaceuticals Inc. was incorporated in 2002 and is headquartered in New York.
About Fate Therapeutics
Fate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops programmed cellular immunotherapies for cancer and immune disorders worldwide. The company's chimeric antigen receptor (CAR)-targeted NK and T-cell product candidates include FT576 to treat multiple myeloma, and FT522, to treat lymphoma and autoimmune disorders. Its CAR T-cell programs include FT819 to treat hematologic malignancies and solid tumors, and FT825 to treat solid tumors. The company has a collaboration and option agreement with Ono Pharmaceutical Co. Ltd. for the development and commercialization of off-the-shelf, iPSC-derived CAR T-cell product candidates for the treatment of cancer. Fate Therapeutics, Inc. was incorporated in 2007 and is headquartered in San Diego, California.
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