Reviewing Krystal Biotech (NASDAQ:KRYS) & Turnstone Biologics (NASDAQ:TSBX)

Krystal Biotech (NASDAQ:KRYS) and Turnstone Biologics (NASDAQ:TSBX) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Institutional & Insider Ownership

86.3% of Krystal Biotech shares are held by institutional investors. Comparatively, 52.5% of Turnstone Biologics shares are held by institutional investors. 14.1% of Krystal Biotech shares are held by company insiders. Comparatively, 32.1% of Turnstone Biologics 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.

Earnings & Valuation

This table compares Krystal Biotech and Turnstone Biologics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Krystal Biotech	$166.23 million	31.39	$10.93 million	$1.87	97.72
Turnstone Biologics	$19.31 million	0.81	-$55.20 million	($10.14)	-0.07

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Krystal Biotech and Turnstone Biologics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Krystal Biotech	0	1	7	1	3.00
Turnstone Biologics	0	0	2	0	3.00

Krystal Biotech currently has a consensus target price of $196.75, suggesting a potential upside of 7.67%. Turnstone Biologics has a consensus target price of $6.88, suggesting a potential upside of 910.88%. Given Turnstone Biologics’ higher probable upside, analysts plainly believe Turnstone Biologics is more favorable than Krystal Biotech.

Profitability

This table compares Krystal Biotech and Turnstone Biologics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Krystal Biotech	63.73%	1.99%	1.87%
Turnstone Biologics	N/A	-85.18%	-72.25%

Volatility and Risk

Krystal Biotech has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Turnstone Biologics has a beta of 2.27, suggesting that its stock price is 127% more volatile than the S&P 500.

Summary

Krystal Biotech beats Turnstone Biologics on 10 of the 13 factors compared between the two stocks.

About Krystal Biotech

Krystal Biotech, Inc., a commercial-stage biotechnology company, discovers, develops, and commercializes genetic medicines for patients with rare diseases in the United States. It commercializes VYJUVEK (beremagene geperpavec-svdt, or B-VEC) for the treatment of dystrophic epidermolysis bullosa (DEB). The company also develops KB105, which is in Phase 1/2 clinical trials for treating patients with deficient autosomal recessive congenital ichthyosis; KB104 for treating netherton syndrome; KB407 that is in Phase 1 clinical trials for treating cystic fibrosis; KB707 that is in Phase 1 clinical trials for the treatment of anti-PD-1 relapsed/refractory; KB408, which is in Phase 1 clinical trials for treating Alpha-1 antitrypsin deficiency; and KB301 that is in Phase 2 clinical trials for treating aesthetic skin conditions, as well as in open label study with ophthalmic B-VEC for treating for ocular complications of deb. Krystal Biotech, Inc. was founded in 2016 and is headquartered in Pittsburgh, Pennsylvania.

About Turnstone Biologics

Turnstone Biologics Corp., a clinical stage biotechnology company, focuses on developing medicines to treat and cure patients with solid tumors. The company's lead product includes TIDAL-01 that is in Phase 1 clinical trials for the treatment of breast cancer, colorectal cancer, head and neck cancer and uveal melanoma, as well as an investigator sponsored trials to treat colorectal cancer, head and neck cancer, and cutaneous and non-cutaneous melanomas. It is also developing TIDAL-02, which is in preclinical development for the treatment of solid tumors. The company was founded in 2014 and is based in LA Jolla, California.