Analyzing Omega Therapeutics (NASDAQ:OMGA) and Genfit (NASDAQ:GNFT)

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

Profitability

This table compares Omega Therapeutics and Genfit’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%
Genfit	N/A	N/A	N/A

Earnings & Valuation

This table compares Omega Therapeutics and Genfit”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Therapeutics	$3.09 million	4.66	-$97.43 million	($1.33)	-0.20
Genfit	$41.31 million	4.87	-$31.27 million	N/A	N/A

Genfit has higher revenue and earnings than Omega Therapeutics.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Omega Therapeutics and Genfit, as provided by MarketBeat.

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

Omega Therapeutics currently has a consensus target price of $9.20, indicating a potential upside of 3,438.46%. Genfit has a consensus target price of $13.00, indicating a potential upside of 222.98%. Given Omega Therapeutics’ higher possible upside, equities research analysts clearly believe Omega Therapeutics is more favorable than Genfit.

Risk and Volatility

Omega Therapeutics has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, Genfit has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Institutional & Insider Ownership

97.5% of Omega Therapeutics shares are owned by institutional investors. Comparatively, 2.2% of Genfit shares are owned by institutional investors. 8.5% of Omega Therapeutics shares are owned by insiders. Comparatively, 4.2% of Genfit shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Genfit beats Omega Therapeutics on 7 of the 12 factors compared between the two stocks.

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 Genfit

Genfit S.A., a late-stage biopharmaceutical company, discovers and develops drug candidates and diagnostic solutions for metabolic and liver-related diseases. The company develops Elafibranor, which is in Phase III clinical trial to treat patients with primary biliary cholangitis. It also engages in the development of NIS4 technology for the diagnosis of nonalcoholic steatohepatitis (NASH) and fibrosis; VS-01 for the treatment of Urea Cycle Disorder (UCD) and Organic Acidemia Disorder (OAD); GNS561, which is in Phase 1b/2a trial to treat patients with cholangiocarcinoma (CCA); VS-01-ACLF and Nitazoxanide (NTZ), which is in Phase 1 trial to treat acute-on-chronic liver failure, as well as VS-02-HE, which is in preclinical trial for the treatment of Reduction of Hyperammonemia and the Stabilization of Blood Ammonia; CML-022; SRT-015, an ASK1 inhibitor targets the inhibition of cellular apoptosis, inflammation, and fibrosis. The company has a licensing agreement with Labcorp for the commercialization of NASHnext, a blood-based molecular diagnostic test; and Genoscience Pharma to develop and commercialize the investigational treatment GNS561 for CCA. The company was incorporated in 1999 and is headquartered in Loos, France.