Head-To-Head Contrast: Sotera Health (NASDAQ:SHC) and OmniAb (NASDAQ:OABI)

OmniAb (NASDAQ:OABI) and Sotera Health (NASDAQ:SHC) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Valuation & Earnings

This table compares OmniAb and Sotera Health”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OmniAb	$18.67 million	36.83	-$64.78 million	($0.36)	-13.19
Sotera Health	$1.16 billion	4.67	$77.94 million	$0.57	33.39

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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for OmniAb and Sotera Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OmniAb	1	0	2	0	2.33
Sotera Health	0	3	8	0	2.73

OmniAb presently has a consensus price target of $11.00, suggesting a potential upside of 131.58%. Sotera Health has a consensus price target of $21.50, suggesting a potential upside of 12.98%. Given OmniAb’s higher possible upside, equities research analysts plainly believe OmniAb is more favorable than Sotera Health.

Institutional & Insider Ownership

72.1% of OmniAb shares are owned by institutional investors. Comparatively, 91.0% of Sotera Health shares are owned by institutional investors. 9.8% of OmniAb shares are owned by insiders. Comparatively, 15.4% of Sotera Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

OmniAb has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Sotera Health has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500.

Profitability

This table compares OmniAb and Sotera Health’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%
Sotera Health	13.44%	40.12%	7.55%

Summary

Sotera Health beats OmniAb on 12 of the 14 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 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.