Opus Genetics (NASDAQ:IRD – Get Free Report) and Wave Life Sciences (NASDAQ:WVE – Get Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.
Earnings and Valuation
This table compares Opus Genetics and Wave Life Sciences”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Opus Genetics | $19.05 million | 1.79 | -$9.99 million | ($1.09) | -0.99 |
| Wave Life Sciences | $113.31 million | 15.69 | -$57.51 million | ($1.11) | -10.50 |
Opus Genetics has higher earnings, but lower revenue than Wave Life Sciences. Wave Life Sciences is trading at a lower price-to-earnings ratio than Opus Genetics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Profitability
This table compares Opus Genetics and Wave Life Sciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Opus Genetics | -324.45% | -63.65% | -56.94% |
| Wave Life Sciences | -66.50% | -280.57% | -52.90% |
Institutional & Insider Ownership
15.0% of Opus Genetics shares are owned by institutional investors. Comparatively, 89.7% of Wave Life Sciences shares are owned by institutional investors. 6.6% of Opus Genetics shares are owned by company insiders. Comparatively, 29.1% of Wave Life Sciences shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Opus Genetics and Wave Life Sciences, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Opus Genetics | 0 | 0 | 1 | 0 | 3.00 |
| Wave Life Sciences | 0 | 1 | 7 | 1 | 3.00 |
Opus Genetics presently has a consensus target price of $8.00, suggesting a potential upside of 640.74%. Wave Life Sciences has a consensus target price of $22.22, suggesting a potential upside of 90.59%. Given Opus Genetics’ higher possible upside, research analysts plainly believe Opus Genetics is more favorable than Wave Life Sciences.
Summary
Wave Life Sciences beats Opus Genetics on 8 of the 13 factors compared between the two stocks.
About Opus Genetics
Opus Genetics Inc. is a clinical-stage ophthalmic biopharmaceutical company, focuses on developing and commercializing therapies for the treatment of unmet needs of patients with refractive and retinal eye disorders. Opus Genetics Inc., formerly known as Ocuphire Pharma Inc., is based in Farmington Hills, Michigan.
About Wave Life Sciences
Wave Life Sciences Ltd., a clinical-stage biotechnology company, designs, develops, and commercializes ribonucleic acid (RNA) medicines through PRISM, a discovery and drug development platform. The company's RNA medicines platform, PRISM, combines multiple modalities, chemistry innovation, and deep insights into human genetics to deliver scientific breakthroughs that treat both rare and prevalent disorders. It is developing WVE-006, a RNA editing oligonucleotide for the treatment of alpha-1 antitrypsin deficiency; siRNA clinical candidate for the treatment of obesity and other metabolic disorders; WVE-N531, a exon skipping oligonucleotide for the treatment of duchenne muscular dystrophy; and WVE-003, an antisense silencing oligonucleotide for the treatment of Huntington's disease (HD). The company has collaboration agreements with GlaxoSmithKline for the research, development, and commercialization of oligonucleotide therapeutics; Takeda Pharmaceutical Company Limited for the research, development, and commercialization of oligonucleotide therapeutics for disorders of the Central Nervous System; and Asuragen, Inc. for the development and potential commercialization of companion diagnostics for investigational allele-selective therapeutic programs targeting HD. Wave Life Sciences Ltd. was incorporated in 2012 and is based in Singapore.
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