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

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

Risk & Volatility

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Turnstone Biologics	$19.31 million	0.67	-$55.20 million	($10.14)	-0.05
Organovo	$110,000.00	57.31	-$14.67 million	($1.61)	-0.27

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%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations 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 presently has a consensus price target of $6.88, suggesting a potential upside of 1,133.41%. Given Turnstone Biologics’ higher probable upside, research analysts plainly believe Turnstone Biologics is more favorable than Organovo.

Insider and Institutional Ownership

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

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.