Olema Pharmaceuticals (NASDAQ:OLMA – Get Rating) and Otonomy (NASDAQ:OTIC – Get Rating) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Olema Pharmaceuticals and Otonomy, as reported by MarketBeat.
Get Olema Pharmaceuticals alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Olema Pharmaceuticals | 0 | 0 | 3 | 0 | 3.00 |
| Otonomy | 0 | 2 | 1 | 0 | 2.33 |
Olema Pharmaceuticals presently has a consensus target price of $14.33, suggesting a potential upside of 268.47%. Otonomy has a consensus target price of $3.25, suggesting a potential upside of 2,895.39%. Given Otonomy's higher probable upside, analysts clearly believe Otonomy is more favorable than Olema Pharmaceuticals.
Volatility and Risk
Olema Pharmaceuticals has a beta of 2.36, indicating that its share price is 136% more volatile than the S&P 500. Comparatively, Otonomy has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.
Insider and Institutional Ownership
82.4% of Olema Pharmaceuticals shares are held by institutional investors. Comparatively, 41.2% of Otonomy shares are held by institutional investors. 21.1% of Olema Pharmaceuticals shares are held by insiders. Comparatively, 1.1% of Otonomy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Olema Pharmaceuticals and Otonomy's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Olema Pharmaceuticals | N/A | N/A | -$71.10 million | ($2.62) | -1.48 |
| Otonomy | $130,000.00 | 57.20 | -$51.18 million | ($0.77) | -0.14 |
Otonomy has higher revenue and earnings than Olema Pharmaceuticals. Olema Pharmaceuticals is trading at a lower price-to-earnings ratio than Otonomy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Olema Pharmaceuticals and Otonomy's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Olema Pharmaceuticals | N/A | -43.72% | -41.36% |
| Otonomy | N/A | -137.86% | -68.50% |
Summary
Olema Pharmaceuticals beats Otonomy on 7 of the 12 factors compared between the two stocks.
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.
About Otonomy
(Get Rating)
Otonomy, Inc. operates as a biopharmaceutical company. engages in the development of therapeutics for neurotology. The firm's product pipeline includes OTIVIDEX (dexamethasone) Meniere's disease, OTIPRIO (ciprofloxacin otic suspension) acute otitis media with tubes (AOMT), OTO-313 (gacyclidine) tinnitus, OTO-413 (BDNF) hidden hearing Loss, OTO-510 (otoprotectant) prevent CIHL, OTO-6XX (hair cell regeneration) severe hearing loss. It operates under the Otiprio brand. The company was founded by Jay B. Lichter, Jeffrey Harris, Rick Friedman, and Allen F. Ryan on May 6, 2008 and is headquartered in San Diego, CA.
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