Financial Survey: Flora Growth (NASDAQ:FLGC) versus Omeros (NASDAQ:OMER)

Omeros (NASDAQ:OMER) and Flora Growth (NASDAQ:FLGC) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Analyst Ratings

This is a summary of recent ratings for Omeros and Flora Growth, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omeros	1	1	2	1	2.60
Flora Growth	1	0	1	0	2.00

Omeros currently has a consensus target price of $40.33, indicating a potential upside of 256.93%. Flora Growth has a consensus target price of $30.00, indicating a potential upside of 222.23%. Given Omeros’ stronger consensus rating and higher probable upside, research analysts plainly believe Omeros is more favorable than Flora Growth.

Insider & Institutional Ownership

48.8% of Omeros shares are held by institutional investors. Comparatively, 36.0% of Flora Growth shares are held by institutional investors. 12.9% of Omeros shares are held by company insiders. Comparatively, 2.3% of Flora Growth shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Omeros has a beta of 2.44, meaning that its stock price is 144% more volatile than the S&P 500. Comparatively, Flora Growth has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500.

Profitability

This table compares Omeros and Flora Growth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omeros	N/A	N/A	-52.38%
Flora Growth	-32.03%	-64.02%	-34.46%

Earnings & Valuation

This table compares Omeros and Flora Growth”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omeros	N/A	N/A	-$156.82 million	($2.02)	-5.59
Flora Growth	$57.61 million	0.17	-$15.91 million	($32.49)	-0.29

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

Summary

Omeros beats Flora Growth on 10 of the 14 factors compared between the two stocks.

About Omeros

Omeros Corporation, a clinical-stage biopharmaceutical company, discovers, develops, and commercializes small-molecule and protein therapeutics, and orphan indications targeting immunologic diseases, including complement-mediated diseases, cancers, and addictive and compulsive disorders. The company’s products under development include Narsoplimab (OMS721/MASP-2) that has completed pivotal trial for hematopoietic stem-cell transplant-associated thrombotic microangiopathy (TA-TMA); that is in Phase III clinical trial for the treatment of immunoglobulin A nephropathy (IgAN); and Phase II clinical trial to treat COVID-19. It also develops OMS1029 that is in phase I clinical trials for long-acting second-generation antibody targeting lectin pathway disorders; OMS906 that has completed phase II clinical trials for Paroxysmal nocturnal hemoglobinuria, complement 3 glomerulopathy, and other alternative pathway disorders; and OMS527 that is in phase I clinical trials for addictions and compulsive disorders, and movement disorders. In addition, the company’s products under preclinical development comprise MASP-2, a pro-inflammatory protein target for the treatment of lectin pathway disorders; MASP-3 small-molecule inhibitors for alternative pathway disorders; and Adoptive T-Cell and Chimeric Antigen Receptor (CAR) T-Cell Therapies and Immunomodulators/Immunotoxins/Cancer Vaccines for the treatment of various cancers. Omeros Corporation was incorporated in 1994 and is headquartered in Seattle, Washington.

About Flora Growth

Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products worldwide. It operates through three segments: House of Brands, Commercial and Wholesale, and Pharmaceuticals. The company cultivates, processes, and supplies medicinal-grade cannabis flower, and cannabis derived medical and wellness products. It also offers food and beverage, nutraceuticals, cannabis accessories and technology, personal care, and wellness; cannabidiol (CBD) derived products, such as gummies, topicals, tinctures, and vape products; cannabis consumption accessories, personal storage, and travel accessories for the vape and dry herbs. In addition, the company manufactures and distributes pharmaceutical goods and medical cannabis products to treat a variety of health indications, including drugs related to cancer therapies, attention-deficit/hyperactivity disorder, multiple sclerosis, and anti-depressants. The company sells its products under the JustCBD, Vessel, and Phatebo brands. Flora Growth Corp. was incorporated in 2019 and is based in Fort Lauderdale, Florida.