Head-To-Head Analysis: OmniAb (NASDAQ:OABI) versus Avantor (NYSE:AVTR)

OmniAb (NASDAQ:OABI) and Avantor (NYSE:AVTR) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Risk and Volatility

OmniAb has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Avantor has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Profitability

This table compares OmniAb and Avantor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OmniAb	-115.12%	-16.59%	-14.82%
Avantor	-8.81%	9.92%	4.75%

Earnings and Valuation

This table compares OmniAb and Avantor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OmniAb	$38.46 million	16.38	-$64.78 million	($0.36)	-12.08
Avantor	$6.55 billion	1.60	-$530.20 million	($0.84)	-18.40

OmniAb has higher earnings, but lower revenue 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for OmniAb and Avantor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OmniAb	1	0	2	0	2.33
Avantor	1	15	2	0	2.06

OmniAb currently has a consensus target price of $11.00, indicating a potential upside of 152.87%. Avantor has a consensus target price of $12.47, indicating a potential downside of 19.31%. Given OmniAb’s stronger consensus rating and higher probable upside, analysts clearly believe OmniAb is more favorable than Avantor.

Insider & Institutional Ownership

72.1% of OmniAb shares are held by institutional investors. Comparatively, 95.1% of Avantor shares are held by institutional investors. 9.8% of OmniAb shares are held by company insiders. Comparatively, 0.3% of Avantor shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

OmniAb beats Avantor on 7 of the 13 factors compared between the two stocks.

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.

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.