Analyzing Lexeo Therapeutics (NASDAQ:LXEO) and Organovo (NASDAQ:ONVO)

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

Valuation and Earnings

This table compares Lexeo Therapeutics and Organovo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lexeo Therapeutics	$650,000.00	401.30	-$66.39 million	($14.63)	-0.54
Organovo	$110,000.00	60.08	-$14.67 million	($1.38)	-0.31

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

Insider & Institutional Ownership

60.7% of Lexeo Therapeutics shares are owned by institutional investors. Comparatively, 8.2% of Organovo shares are owned by institutional investors. 4.5% of Lexeo Therapeutics shares are owned by insiders. Comparatively, 3.7% of Organovo shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Lexeo Therapeutics and Organovo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lexeo Therapeutics	0	0	8	1	3.11
Organovo	0	0	0	0	0.00

Lexeo Therapeutics presently has a consensus target price of $22.14, suggesting a potential upside of 180.64%. Given Lexeo Therapeutics’ stronger consensus rating and higher probable upside, equities analysts clearly believe Lexeo Therapeutics is more favorable than Organovo.

Profitability

This table compares Lexeo Therapeutics and Organovo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lexeo Therapeutics	N/A	-103.43%	-51.50%
Organovo	N/A	-224.68%	-156.01%

Summary

Lexeo Therapeutics beats Organovo on 10 of the 13 factors compared between the two stocks.

About Lexeo Therapeutics

Lexeo Therapeutics, Inc. operates as a clinical stage genetic medicine company that focuses on hereditary and acquired diseases. The company develops LX2006, which is an AAVrh10-based gene therapy candidate for the treatment of Friedreich's ataxia (FA) cardiomyopathy; LX2020, an AAVrh10-based gene therapy candidate for the treatment of plakophilin-2 arrhythmogenic cardiomyopathy; LX2021, a gene therapy candidate for the treatment of DSP cardiomyopathy associated with it; and LX2022, a gene therapy candidate for the treatment of hypertrophic cardiomyopathy, or HCM caused by TNNI3 gene. It also develops LX1001, an AAVrh10-based gene therapy candidate for the treatment of APOE4 homozygous; LX1020, a gene therapy candidate for the treatment of APOE4 homozygous; LX1021 for the treatment of APOE4 homozygotes; and LX1004 for the treatment of CLN2 Batten disease. The company was incorporated in 2017 and is based in New York, New York.

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.