Analyzing Organovo (NASDAQ:ONVO) & Turnstone Biologics (NASDAQ:TSBX)

Organovo (NASDAQ:ONVO) and Turnstone Biologics (NASDAQ:TSBX) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Valuation and Earnings

This table compares Organovo and Turnstone Biologics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organovo	$73,000.00	93.75	-$14.67 million	($1.61)	-0.30
Turnstone Biologics	$19.31 million	0.78	-$55.20 million	($10.14)	-0.06

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

Volatility & Risk

Organovo has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Turnstone Biologics has a beta of 2.27, meaning that its share price is 127% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Organovo	N/A	-224.68%	-156.01%
Turnstone Biologics	N/A	-85.18%	-72.25%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Organovo and Turnstone Biologics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organovo	0	0	0	0	N/A
Turnstone Biologics	0	0	2	0	3.00

Turnstone Biologics has a consensus target price of $6.88, indicating a potential upside of 956.39%. Given Turnstone Biologics’ higher probable upside, analysts plainly believe Turnstone Biologics is more favorable than Organovo.

Institutional & Insider Ownership

8.2% of Organovo shares are owned by institutional investors. Comparatively, 52.5% of Turnstone Biologics shares are owned by institutional investors. 4.0% of Organovo shares are owned by insiders. Comparatively, 32.1% of Turnstone Biologics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Turnstone Biologics beats Organovo on 9 of the 12 factors compared between the two stocks.

About Organovo

Organovo Holdings, Inc., a biotechnology company, focuses on developing 3D tissues that recapitulate key aspects of human disease. Its 3D human tissue platform includes its proprietary NovoGen Bioprinters, which are automated devices that enable the fabrication of 3D living tissues comprised mammalian cells; and related technologies for preparing bio-inks and bioprinting multicellular tissues with complex architecture. The company offers ExVive 3D bioprinted human liver tissue with distinct hepatocellular and non-parenchymal cell compartments. The company was incorporated in 2007 and is headquartered in San Diego, California.

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.