Journey Medical (NASDAQ:DERM) versus Omega Therapeutics (OTCMKTS:OMGAQ) Head to Head Review

Omega Therapeutics (OTCMKTS:OMGAQ) and Journey Medical (NASDAQ:DERM) are both small-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Earnings & Valuation

This table compares Omega Therapeutics and Journey Medical”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Therapeutics	$3.09 million	0.05	-$97.43 million	($1.33)	-0.00
Journey Medical	$61.86 million	3.41	-$11.43 million	($0.22)	-33.95

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Omega Therapeutics and Journey Medical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Therapeutics	0	0	0	0	0.00
Journey Medical	1	1	2	0	2.25

Journey Medical has a consensus price target of $14.00, indicating a potential upside of 87.42%. Given Journey Medical’s stronger consensus rating and higher possible upside, analysts plainly believe Journey Medical is more favorable than Omega Therapeutics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omega Therapeutics	N/A	N/A	N/A
Journey Medical	-8.95%	-20.23%	-6.60%

Volatility and Risk

Omega Therapeutics has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Journey Medical has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Insider & Institutional Ownership

97.5% of Omega Therapeutics shares are held by institutional investors. Comparatively, 7.2% of Journey Medical shares are held by institutional investors. 8.5% of Omega Therapeutics shares are held by insiders. Comparatively, 14.5% of Journey Medical shares are held by 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.

Summary

Journey Medical beats Omega Therapeutics on 9 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 Journey Medical

Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant nodular acne; and Amzeeq, a topical formulation of minocycline for the treatment of inflammatory lesions of non-nodular moderate to severe acne vulgaris. It also offers Zilxi, a topical minocycline treatment for inflammatory lesions of rosacea; Exelderm cream and solution an antifungal intended for topical use; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; and Luxamend, a water-based emulsion formulated to provide a moist healing environment for superficial wounds; minor cuts or scrapes; dermal ulcers; donor sites; first- and second-degree burns, including sunburns; and radiation dermatitis. In addition, the company sells sulconazole nitrate cream and solution indicated for the treatment of tinea cruris, tinea corporis, and tinea versicolor; and doxycycline hyclate tablets, as an adjunctive therapy for severe acne. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona. Journey Medical Corporation is a subsidiary of Fortress Biotech, Inc.