Head-To-Head Contrast: Oramed Pharmaceuticals (NASDAQ:ORMP) versus Sanuwave Health (NASDAQ:SNWV)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oramed Pharmaceuticals	N/A	-6.83%	-6.25%
Sanuwave Health	26.64%	-141.56%	34.53%

Volatility & Risk

Oramed Pharmaceuticals has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Sanuwave Health has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.

Earnings and Valuation

This table compares Oramed Pharmaceuticals and Sanuwave Health”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oramed Pharmaceuticals	$2.00 million	77.87	$64.05 million	$1.49	2.58
Sanuwave Health	$44.05 million	3.78	$11.81 million	($0.16)	-121.00

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Oramed Pharmaceuticals and Sanuwave Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oramed Pharmaceuticals	0	1	0	0	2.00
Sanuwave Health	1	1	1	1	2.50

Sanuwave Health has a consensus price target of $51.00, indicating a potential upside of 163.43%. Given Sanuwave Health’s stronger consensus rating and higher possible upside, analysts clearly believe Sanuwave Health is more favorable than Oramed Pharmaceuticals.

Insider and Institutional Ownership

12.7% of Oramed Pharmaceuticals shares are held by institutional investors. Comparatively, 42.5% of Sanuwave Health shares are held by institutional investors. 17.8% of Oramed Pharmaceuticals shares are held by company insiders. Comparatively, 14.9% of Sanuwave Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Sanuwave Health beats Oramed Pharmaceuticals on 9 of the 15 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 Sanuwave Health

SANUWAVE Health, Inc., a shock wave technology company, researches, develops, and commercializes noninvasive, high-energy, and acoustic shock waves for regenerative medicine and other applications in the United States and internationally. Its shockwaves are used to produce a biological response resulting in the body healing itself through the repair and regeneration of tissue, and musculoskeletal and vascular structures. The company’s lead regenerative product is the dermaPACE device for treating diabetic foot ulcers. Its portfolio of healthcare products and product candidates activate biologic signaling and angiogenic responses, including new vascularization and microcirculatory improvement, which helps to restore the body’s normal healing processes and regeneration. The company also focuses on applying its Pulsed Acoustic Cellular Expression technology in wound healing, orthopedic, plastic/cosmetic, and cardiac conditions. In addition, it offers UltraMIST, non-contact and non-thermal ultrasound therapy device used to treat diabetic foot ulcers, pressure ulcers, venous leg ulcers, deep tissue pressure injuries, and surgical wounds; and orthoPACE system to treat tendinopathies and acute and nonunion fractures. The company was founded in 2005 and is headquartered in Suwanee, Georgia.