Critical Analysis: Cytosorbents (NASDAQ:CTSO) & Omeros (NASDAQ:OMER)

Omeros (NASDAQ:OMER) and Cytosorbents (NASDAQ:CTSO) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Risk & Volatility

Omeros has a beta of 2.38, indicating that its share price is 138% more volatile than the S&P 500. Comparatively, Cytosorbents has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Insider & Institutional Ownership

48.8% of Omeros shares are owned by institutional investors. Comparatively, 32.9% of Cytosorbents shares are owned by institutional investors. 12.9% of Omeros shares are owned by company insiders. Comparatively, 6.6% of Cytosorbents shares are owned by company 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.

Valuation & Earnings

This table compares Omeros and Cytosorbents”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omeros	N/A	N/A	-$156.82 million	($2.02)	-6.35
Cytosorbents	$35.60 million	1.24	-$20.72 million	($0.18)	-3.90

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Omeros and Cytosorbents, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omeros	1	1	2	1	2.60
Cytosorbents	1	1	1	0	2.00

Omeros presently has a consensus target price of $40.33, indicating a potential upside of 214.61%. Cytosorbents has a consensus target price of $5.38, indicating a potential upside of 666.54%. Given Cytosorbents’ higher possible upside, analysts plainly believe Cytosorbents is more favorable than Omeros.

Profitability

This table compares Omeros and Cytosorbents’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omeros	N/A	N/A	-52.38%
Cytosorbents	-27.77%	-101.14%	-24.38%

Summary

Omeros beats Cytosorbents on 8 of the 14 factors compared between the two stocks.

About Omeros

Omeros Corporation, a clinical-stage biopharmaceutical company, discovers, develops, and commercializes small-molecule and protein therapeutics, and orphan indications targeting immunologic diseases, including complement-mediated diseases, cancers, and addictive and compulsive disorders. The company’s products under development include Narsoplimab (OMS721/MASP-2) that has completed pivotal trial for hematopoietic stem-cell transplant-associated thrombotic microangiopathy (TA-TMA); that is in Phase III clinical trial for the treatment of immunoglobulin A nephropathy (IgAN); and Phase II clinical trial to treat COVID-19. It also develops OMS1029 that is in phase I clinical trials for long-acting second-generation antibody targeting lectin pathway disorders; OMS906 that has completed phase II clinical trials for Paroxysmal nocturnal hemoglobinuria, complement 3 glomerulopathy, and other alternative pathway disorders; and OMS527 that is in phase I clinical trials for addictions and compulsive disorders, and movement disorders. In addition, the company’s products under preclinical development comprise MASP-2, a pro-inflammatory protein target for the treatment of lectin pathway disorders; MASP-3 small-molecule inhibitors for alternative pathway disorders; and Adoptive T-Cell and Chimeric Antigen Receptor (CAR) T-Cell Therapies and Immunomodulators/Immunotoxins/Cancer Vaccines for the treatment of various cancers. Omeros Corporation was incorporated in 1994 and is headquartered in Seattle, Washington.

About Cytosorbents

Cytosorbents Corporation engages in the research, development, and commercialization of medical devices with its blood purification technology platform incorporating a proprietary adsorbent and porous polymer technology in the United States, Germany, and internationally. Its flagship product is CytoSorb, an extracorporeal cytokine adsorber for adjunctive therapy in the treatment of sepsis, adjunctive therapy in other critical care applications, prevention, and treatment of perioperative complications, and maintaining or enhancing the quality of solid organs harvested from donors for organ transplant; and offers VetResQ, a device for adjunctive therapy in the treatment of sepsis, pancreatitis, and other critical illnesses in animals. The company also develops CytoSorb-XL, a device for adjunctive therapy in the treatment of sepsis and other critical illnesses; HemoDefend blood purification technology platform to reduce contaminants in the blood supply that can cause transfusion reactions or disease when administering blood and blood products to patients, and removal of anti-A and anti-B blood group antibodies from whole blood and plasma; K+ontrol for treatment of severe hyperkalemia in patients with life-threatening conditions; and ContrastSorb for the removal of IV contrast in blood administered during CT imaging, an angiogram, or during a vascular interventional radiology procedure to reduce the risk of contrast-induced nephropathy. In addition, it develops BetaSorb, a device for the prevention and treatment of health complications caused by the accumulation of metabolic toxins in patients with chronic renal failure; DrugSorb, a device to remove drugs and chemicals from the blood; and DrugSorb-ATR, an antithrombotic removal system. The company was formerly known as MedaSorb Technologies Corporation and changed its name to Cytosorbents Corporation in May 2010. Cytosorbents Corporation was founded in 1997 and is headquartered in Princeton, New Jersey.