Critical Comparison: Oramed Pharmaceuticals (NASDAQ:ORMP) vs. QuidelOrtho (NASDAQ:QDEL)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oramed Pharmaceuticals	N/A	-5.57%	-5.22%
QuidelOrtho	-42.53%	5.75%	2.49%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Oramed Pharmaceuticals and QuidelOrtho, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oramed Pharmaceuticals	0	1	0	0	2.00
QuidelOrtho	2	3	2	0	2.00

QuidelOrtho has a consensus target price of $39.00, suggesting a potential upside of 33.29%. Given QuidelOrtho’s higher possible upside, analysts clearly believe QuidelOrtho is more favorable than Oramed Pharmaceuticals.

Valuation & Earnings

This table compares Oramed Pharmaceuticals and QuidelOrtho”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oramed Pharmaceuticals	$1.34 million	101.88	-$19.06 million	$1.26	2.72
QuidelOrtho	$2.78 billion	0.71	-$2.05 billion	($17.02)	-1.72

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

Volatility and Risk

Oramed Pharmaceuticals has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, QuidelOrtho has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Institutional & Insider Ownership

12.7% of Oramed Pharmaceuticals shares are held by institutional investors. Comparatively, 99.0% of QuidelOrtho shares are held by institutional investors. 17.8% of Oramed Pharmaceuticals shares are held by insiders. Comparatively, 0.8% of QuidelOrtho shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Oramed Pharmaceuticals beats QuidelOrtho on 7 of the 13 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 QuidelOrtho

QuidelOrtho Corporation provides diagnostic testing solutions. The company operates through Labs, Transfusion Medicine, Point-of-Care, and Molecular Diagnostics business units. The Labs business unit provides clinical chemistry laboratory instruments and tests that measure target chemicals in bodily fluids for the evaluation of health and the clinical management of patients; immunoassay laboratory instruments and tests, which measure proteins as they act as antigens in the spread of disease, antibodies in the immune response spurred by disease, or markers of proper organ function and health; testing products to detect and monitor disease progression across a spectrum of therapeutic areas; and specialized diagnostic solutions. The Transfusion Medicine business unit offers immunohematology instruments and tests used for blood typing to ensure patient-donor compatibility in blood transfusions; and donor screening instruments and tests used for blood and plasma screening for infectious diseases. The Point-of-Care business unit provides instruments and tests to provide rapid results across a continuum of point-of-care settings. The Molecular Diagnostics business unit offers polymerase chain reaction thermocyclers; amplification systems; and sample-to-result molecular instruments and tests for syndromic infectious disease diagnostics. The company sells its products directly to end users through a direct sales force; and through a network of distributors for professional use in physician offices, hospitals, clinical laboratories, reference laboratories, urgent care clinics, universities, retail clinics, pharmacies, wellness screening centers, blood banks, and donor centers, as well as for individual, non-professional, and over-the-counter use. It operates in North America, Europe, the Middle East, Africa, China, and internationally. The company was incorporated in 1979 and is headquartered in San Diego, California.