Financial Comparison: Omega Therapeutics (OTCMKTS:OMGAQ) & Journey Medical (NASDAQ:DERM)

Journey Medical (NASDAQ:DERM) and Omega Therapeutics (OTCMKTS:OMGAQ) are both small-cap healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Volatility & Risk

Journey Medical has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Omega Therapeutics has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Profitability

This table compares Journey Medical and Omega Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Journey Medical	-8.95%	-20.23%	-6.60%
Omega Therapeutics	N/A	N/A	N/A

Institutional & Insider Ownership

7.2% of Journey Medical shares are held by institutional investors. Comparatively, 97.5% of Omega Therapeutics shares are held by institutional investors. 14.5% of Journey Medical shares are held by insiders. Comparatively, 8.5% of Omega Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Journey Medical and Omega Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Journey Medical	1	1	2	0	2.25
Omega Therapeutics	0	0	0	0	0.00

Journey Medical currently has a consensus price target of $14.00, suggesting a potential upside of 80.18%. Given Journey Medical’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Journey Medical is more favorable than Omega Therapeutics.

Valuation and Earnings

This table compares Journey Medical and Omega Therapeutics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Journey Medical	$61.86 million	3.54	-$11.43 million	($0.22)	-35.32
Omega Therapeutics	$3.09 million	0.05	-$97.43 million	($1.33)	-0.00

Journey Medical has higher revenue and earnings than Omega Therapeutics. Journey Medical is trading at a lower price-to-earnings ratio than Omega Therapeutics, indicating that it is currently the more affordable of the two stocks.

Summary

Journey Medical beats Omega Therapeutics on 9 of the 14 factors compared between the two stocks.

About Journey Medical

Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant nodular acne; and Amzeeq, a topical formulation of minocycline for the treatment of inflammatory lesions of non-nodular moderate to severe acne vulgaris. It also offers Zilxi, a topical minocycline treatment for inflammatory lesions of rosacea; Exelderm cream and solution an antifungal intended for topical use; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; and Luxamend, a water-based emulsion formulated to provide a moist healing environment for superficial wounds; minor cuts or scrapes; dermal ulcers; donor sites; first- and second-degree burns, including sunburns; and radiation dermatitis. In addition, the company sells sulconazole nitrate cream and solution indicated for the treatment of tinea cruris, tinea corporis, and tinea versicolor; and doxycycline hyclate tablets, as an adjunctive therapy for severe acne. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona. Journey Medical Corporation is a subsidiary of Fortress Biotech, Inc.

About Omega Therapeutics

Omega Therapeutics, Inc. operates as a clinical-stage biotechnology company. The company's OMEGA platform enables control of fundamental epigenetic processes to correct the root cause of disease by restoring aberrant gene expression to a range without altering native nucleic acid sequences. It also develops OTX-2002 for hepatocellular carcinoma; OTX-2101 for non-small cell lung cancer; omega epigenomic controllers (OEC) for inflammatory lung diseases, such as neutrophilic asthma, acute respiratory distress syndrome, dermatological, oncology, and rheumatological indications; OEC candidates for idiopathic pulmonary fibrosis; liver regeneration medicines; and OEC candidates for patients with diabetes and other conditions to treat corneal epithelial injury. In addition, the company develops OEC candidates for the treatment of alopecia, a disorder characterized by patches of non-scarring hair loss affecting the scalp and body. Omega Therapeutics, Inc. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.