Reviewing OmniAb (NASDAQ:OABI) and Avantor (NYSE:AVTR)

OmniAb (NASDAQ:OABI) and Avantor (NYSE:AVTR) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OmniAb	-115.12%	-16.59%	-14.82%
Avantor	-8.81%	9.92%	4.75%

Earnings & Valuation

This table compares OmniAb and Avantor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OmniAb	$18.67 million	36.14	-$64.78 million	($0.36)	-12.94
Avantor	$6.56 billion	1.59	-$530.20 million	($0.84)	-18.32

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

Insider and Institutional Ownership

72.1% of OmniAb shares are owned by institutional investors. Comparatively, 95.1% of Avantor shares are owned by institutional investors. 9.8% of OmniAb shares are owned by insiders. Comparatively, 0.3% of Avantor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for OmniAb and Avantor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OmniAb	1	0	3	0	2.50
Avantor	1	15	2	0	2.06

OmniAb currently has a consensus price target of $11.50, indicating a potential upside of 146.78%. Avantor has a consensus price target of $12.88, indicating a potential downside of 16.27%. Given OmniAb’s stronger consensus rating and higher probable upside, equities research analysts clearly believe OmniAb is more favorable than Avantor.

Volatility and Risk

OmniAb has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Avantor has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Summary

OmniAb beats Avantor on 8 of the 14 factors compared between the two stocks.

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.

About Avantor

Avantor, Inc. engages in the provision of mission-critical products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips. It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and critical environment supplies. In addition, the company offers services and specialty procurements comprising onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services. Further, it provides scientific research support services, such as DNA extraction, bioreactor servicing, clinical and biorepository, and compound management services. The company was founded in 1904 and is headquartered in Radnor, Pennsylvania.