Head to Head Review: OmniAb (NASDAQ:OABI) and Sotera Health (NASDAQ:SHC)
by Kim Johansen · The Markets DailySotera Health (NASDAQ:SHC – Get Free Report) and OmniAb (NASDAQ:OABI – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Sotera Health and OmniAb, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sotera Health | 0 | 3 | 8 | 0 | 2.73 |
| OmniAb | 1 | 0 | 2 | 0 | 2.33 |
Sotera Health currently has a consensus price target of $21.50, suggesting a potential upside of 17.29%. OmniAb has a consensus price target of $11.00, suggesting a potential upside of 174.31%. Given OmniAb’s higher possible upside, analysts plainly believe OmniAb is more favorable than Sotera Health.
Risk and Volatility
Sotera Health has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500. Comparatively, OmniAb has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.
Profitability
This table compares Sotera Health and OmniAb’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sotera Health | 13.44% | 40.12% | 7.55% |
| OmniAb | -115.12% | -16.59% | -14.82% |
Earnings and Valuation
This table compares Sotera Health and OmniAb”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sotera Health | $1.16 billion | 4.50 | $77.94 million | $0.57 | 32.16 |
| OmniAb | $18.67 million | 31.10 | -$64.78 million | ($0.36) | -11.14 |
Sotera Health has higher revenue and earnings than OmniAb. OmniAb is trading at a lower price-to-earnings ratio than Sotera Health, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
91.0% of Sotera Health shares are held by institutional investors. Comparatively, 72.1% of OmniAb shares are held by institutional investors. 15.4% of Sotera Health shares are held by company insiders. Comparatively, 9.8% of OmniAb 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
Sotera Health beats OmniAb on 12 of the 14 factors compared between the two stocks.
About Sotera Health
Sotera Health Company engages in the provision of sterilization, lab testing, and advisory services in the United States and internationally. The company operates through three segments: Sterigenics, Nordion, and Nelson Labs. It provides mission-critical end-to-end sterilization services, including gamma and electron beam irradiation, and ethylene oxide processing, as well as designs, installs, and maintains gamma irradiation systems. The company also provides microbiological and analytical chemistry testing, as well as technical assistance, regulatory consulting, and advisory services. It serves medical devices, pharmaceuticals, food safety, agricultural products, cancer treatment, and high-performance materials industries, as well as commercial, advanced, and specialty application industries. The company was formerly known as Sotera Health Topco, Inc. and changed its name to Sotera Health Company in October 2020. Sotera Health Company was incorporated in 2015 and is headquartered in Broadview Heights, Ohio.
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.