Selecta Biosciences (NASDAQ:SELB – Get Rating) and Olema Pharmaceuticals (NASDAQ:OLMA – Get Rating) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Insider & Institutional Ownership
40.3% of Selecta Biosciences shares are held by institutional investors. Comparatively, 82.4% of Olema Pharmaceuticals shares are held by institutional investors. 30.5% of Selecta Biosciences shares are held by insiders. Comparatively, 21.1% of Olema Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Get Selecta Biosciences alerts:Risk and Volatility
Selecta Biosciences has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Olema Pharmaceuticals has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for Selecta Biosciences and Olema Pharmaceuticals, as provided by MarketBeat.com.| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Selecta Biosciences | 0 | 0 | 3 | 0 | 3.00 |
| Olema Pharmaceuticals | 0 | 0 | 2 | 0 | 3.00 |
Selecta Biosciences presently has a consensus price target of $5.33, suggesting a potential upside of 371.98%. Olema Pharmaceuticals has a consensus price target of $14.00, suggesting a potential upside of 471.43%. Given Olema Pharmaceuticals' higher possible upside, analysts clearly believe Olema Pharmaceuticals is more favorable than Selecta Biosciences.
Profitability
This table compares Selecta Biosciences and Olema Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Selecta Biosciences | 33.67% | 32.84% | 12.35% |
| Olema Pharmaceuticals | N/A | -39.95% | -37.97% |
Earnings & Valuation
This table compares Selecta Biosciences and Olema Pharmaceuticals' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Selecta Biosciences | $85.08 million | 2.03 | -$25.69 million | $0.12 | 9.42 |
| Olema Pharmaceuticals | N/A | N/A | -$71.10 million | ($2.51) | -0.98 |
Selecta Biosciences has higher revenue and earnings than Olema Pharmaceuticals. Olema Pharmaceuticals is trading at a lower price-to-earnings ratio than Selecta Biosciences, indicating that it is currently the more affordable of the two stocks.
Summary
Selecta Biosciences beats Olema Pharmaceuticals on 9 of the 12 factors compared between the two stocks.
About Selecta Biosciences
(Get Rating)
Selecta Biosciences, Inc., a clinical-stage biopharmaceutical company, engages in the research and development of nanoparticle immunomodulatory drugs for the treatment and prevention of human diseases. The company's lead therapeutic gene therapy program is SEL-302 that is in preclinical stage to improve the treatment of methylmalonic acidemia. It is also developing biologic therapies, such as SEL-212 that is in Phase III clinical trials for the treatment of chronic refractory gout; and product candidates to treat IgA-mediated diseases, including IgA nephropathy, linear IgA bullous dermatitis, IgA pemphigus, and Henoch-Schonlein purpura. In addition, the company is developing gene therapies comprising SEL-313, a product candidate in preclinical stage to treat ornithine transcarbamylase deficiency; SEL-399, a product candidate to evaluate the appropriate dose of ImmTOR in humans to reduce the formation of antibodies to AAV capsids; and products for the treatment of pompe disease, duchenne muscular dystrophy, limb-girdle muscular dystrophy, lysosomal storage disorder, and other autoimmune diseases. Further, it develops tolerogenic therapies to treat primary biliary cholangitis and other autoimmune diseases. The company has license and collaboration agreements with Takeda Pharmaceuticals USA, Inc.; Swedish Orphan Biovitrum; Sarepta Therapeutics, Inc.; Asklepios Biopharmaceutical, Inc.; Massachusetts Institute of Technology; Shenyang Sunshine Pharmaceutical Co., Ltd.; Ginkgo Bioworks Holdings, Inc.; and IGAN Biosciences, Inc. Selecta Biosciences, Inc. was incorporated in 2007 and is headquartered in Watertown, Massachusetts.
About Olema Pharmaceuticals
(Get Rating)
Olema Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapies for women's cancers. Its lead product candidate is OP-1250, an estrogen receptor (ER) antagonist and a selective ER degrader, which is in Phase 1/2 clinical trial for the treatment of recurrent, locally advanced, or metastatic estrogen receptor-positive, human epidermal growth factor receptor 2-negative breast cancer. The company was formerly known as CombiThera, Inc. and changed its name to Olema Pharmaceuticals, Inc. in March 2009. Olema Pharmaceuticals, Inc. was incorporated in 2006 and is headquartered in San Francisco, California.
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