Avantor (NYSE:AVTR – Get Free Report) and OmniAb (NASDAQ:OABI – Get Free Report) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Insider & Institutional Ownership
95.1% of Avantor shares are owned by institutional investors. Comparatively, 72.1% of OmniAb shares are owned by institutional investors. 0.3% of Avantor shares are owned by insiders. Comparatively, 9.8% of OmniAb shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Avantor and OmniAb”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avantor | $6.55 billion | 1.62 | -$530.20 million | ($0.84) | -18.68 |
| OmniAb | $18.67 million | 37.14 | -$64.78 million | ($0.36) | -13.31 |
OmniAb has lower revenue, but higher earnings 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.
Profitability
This table compares Avantor and OmniAb’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avantor | -8.81% | 9.92% | 4.75% |
| OmniAb | -115.12% | -16.59% | -14.82% |
Volatility & Risk
Avantor has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, OmniAb has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and price targets for Avantor and OmniAb, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avantor | 1 | 15 | 2 | 0 | 2.06 |
| OmniAb | 1 | 0 | 3 | 0 | 2.50 |
Avantor currently has a consensus price target of $12.88, indicating a potential downside of 17.88%. OmniAb has a consensus price target of $11.50, indicating a potential upside of 140.08%. Given OmniAb’s stronger consensus rating and higher probable upside, analysts plainly believe OmniAb is more favorable than Avantor.
Summary
OmniAb beats Avantor on 8 of the 14 factors compared between the two stocks.
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.
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.
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