Head to Head Contrast: Allakos (NASDAQ:ALLK) vs. Oramed Pharmaceuticals (NASDAQ:ORMP)

Oramed Pharmaceuticals (NASDAQ:ORMP) and Allakos (NASDAQ:ALLK) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Risk & Volatility

Oramed Pharmaceuticals has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500. Comparatively, Allakos has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Institutional and Insider Ownership

12.7% of Oramed Pharmaceuticals shares are held by institutional investors. Comparatively, 84.6% of Allakos shares are held by institutional investors. 13.7% of Oramed Pharmaceuticals shares are held by insiders. Comparatively, 16.1% of Allakos shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Oramed Pharmaceuticals and Allakos”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oramed Pharmaceuticals	$1.34 million	72.16	$5.53 million	$0.26	9.15
Allakos	N/A	N/A	-$185.70 million	($2.45)	-0.27

Oramed Pharmaceuticals has higher revenue and earnings than Allakos. Allakos is trading at a lower price-to-earnings ratio than Oramed Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Oramed Pharmaceuticals and Allakos, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oramed Pharmaceuticals	0	1	0	0	2.00
Allakos	1	2	2	0	2.20

Allakos has a consensus price target of $1.67, suggesting a potential upside of 155.82%. Given Allakos’ stronger consensus rating and higher probable upside, analysts clearly believe Allakos is more favorable than Oramed Pharmaceuticals.

Profitability

This table compares Oramed Pharmaceuticals and Allakos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oramed Pharmaceuticals	N/A	2.70%	2.10%
Allakos	N/A	-123.58%	-82.95%

Summary

Oramed Pharmaceuticals beats Allakos on 7 of the 12 factors compared between the two stocks.

About Oramed Pharmaceuticals

Oramed Pharmaceuticals Inc. engages in the research and development of pharmaceutical solutions for the treatment of diabetes and for the use of orally ingestible capsules for delivery of polypeptides. The company's product portfolio includes ORMD-0801, an oral insulin capsule, which is in phase III clinical trial for the treatment of individuals with diabetes, as well as in phase II clinical trial for the treatment of non-alcoholic steatohepatitis; and ORA-D-013-1 and ORA-D-013-2, which have completed phase II clinical trial for the treatment of type 2 diabetes. It has license agreements with Oravax Medical Inc. to commercialize oral vaccines for COVID-19 and other novel coronaviruses. Oramed Pharmaceuticals Inc. was incorporated in 2002 and is headquartered in New York.

About Allakos

Allakos Inc., a clinical stage biotechnology company, develops therapeutics that target immunomodulatory receptors present on immune effector cells in allergy, inflammatory, and proliferative diseases in the United States. The company’s lead product candidate is AK006, which in a Phase I clinical trial for the treatment of chronic spontaneous urticaria (CSU) and other indications. The company was incorporated in 2012 and is headquartered in San Carlos, California.