Omega Therapeutics (NASDAQ:OMGA) & AIM ImmunoTech (NYSE:AIM) Critical Review

Omega Therapeutics (NASDAQ:OMGA) and AIM ImmunoTech (NYSE:AIM) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Omega Therapeutics and AIM ImmunoTech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Therapeutics	0	1	4	0	2.80
AIM ImmunoTech	0	0	2	0	3.00

Omega Therapeutics currently has a consensus target price of $8.50, suggesting a potential upside of 6,700.00%. AIM ImmunoTech has a consensus target price of $275.00, suggesting a potential upside of 3,016.15%. Given Omega Therapeutics’ higher possible upside, equities research analysts clearly believe Omega Therapeutics is more favorable than AIM ImmunoTech.

Institutional & Insider Ownership

97.5% of Omega Therapeutics shares are held by institutional investors. Comparatively, 12.0% of AIM ImmunoTech shares are held by institutional investors. 8.5% of Omega Therapeutics shares are held by company insiders. Comparatively, 0.0% of AIM ImmunoTech shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Omega Therapeutics has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, AIM ImmunoTech has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Profitability

This table compares Omega Therapeutics and AIM ImmunoTech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omega Therapeutics	-902.93%	-213.13%	-41.24%
AIM ImmunoTech	-12,594.21%	-421.73%	-147.54%

Earnings and Valuation

This table compares Omega Therapeutics and AIM ImmunoTech”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Therapeutics	$8.10 million	0.85	-$97.43 million	($1.33)	-0.09
AIM ImmunoTech	$146,000.00	46.18	-$28.96 million	($24.00)	-0.37

AIM ImmunoTech has lower revenue, but higher earnings than Omega Therapeutics. AIM ImmunoTech 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

Omega Therapeutics beats AIM ImmunoTech on 11 of the 14 factors compared between the two stocks.

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.

About AIM ImmunoTech

AIM ImmunoTech Inc., an immuno-pharma company, focuses on the research and development of therapeutics to treat multiple types of cancers, viral diseases, and immune-deficiency disorders in the United States. The company's lead product candidate is Ampligen, a drug of macromolecular ribonucleic acid molecules for the treatment of chronic fatigue syndrome (CFS). It is also developing Ampligen for the treatment of pancreatic, renal cell carcinoma, malignant melanoma, non-small cell lung, ovarian, breast, colorectal, and prostate cancers, as well as for myalgic encephalomyelitis, Hepatitis B, HIV, COVID-19, and post-COVID conditions. In addition, the company provides Alferon N Injection, an injectable formulation of natural alpha interferon to treat human papilloma viruses, and genital warts, a sexually transmitted disease. AIM ImmunoTech Inc. has agreements with Amarex Clinical Research LLC; University of Cagliari Dipartimento di Scienze della Vita e dell'Ambiente; Jubilant HollisterStier; Sterling Pharma Solutions; Erasmus University Medical Center Rotterdam; Azenova, LLC; and Alcami Corporation. The company was formerly known as Hemispherx Biopharma, Inc. and changed its name to AIM ImmunoTech Inc. in August 2019. AIM ImmunoTech Inc. was incorporated in 1966 and is headquartered in Ocala, Florida.