Financial Comparison: Organovo (NASDAQ:ONVO) & Turnstone Biologics (NASDAQ:TSBX)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Turnstone Biologics	$19.31 million	0.75	-$55.20 million	($10.14)	-0.06
Organovo	$73,000.00	97.73	-$14.67 million	($1.61)	-0.31

Organovo has lower revenue, but higher earnings 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.

Profitability

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

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

Volatility and Risk

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

Analyst Ratings

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

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

Turnstone Biologics currently has a consensus price target of $6.88, suggesting a potential upside of 991.27%. Given Turnstone Biologics’ higher probable upside, equities research analysts plainly believe Turnstone Biologics is more favorable than Organovo.

Institutional & Insider Ownership

52.5% of Turnstone Biologics shares are owned by institutional investors. Comparatively, 8.2% of Organovo shares are owned by institutional investors. 32.1% of Turnstone Biologics shares are owned by company insiders. Comparatively, 4.0% of Organovo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

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

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.

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.