Critical Analysis: Organovo (NASDAQ:ONVO) versus Turnstone Biologics (NASDAQ:TSBX)
by Mitch Edgeman · The Markets DailyOrganovo (NASDAQ:ONVO – Get Free Report) and Turnstone Biologics (NASDAQ:TSBX – Get Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.
Risk & Volatility
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.
Analyst Ratings
This is a summary of current ratings and recommmendations for Organovo and Turnstone Biologics, as reported by MarketBeat.com.
| 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 price target of $6.88, indicating a potential upside of 1,042.03%. Given Turnstone Biologics’ higher probable upside, analysts clearly believe Turnstone Biologics is more favorable than Organovo.
Valuation and Earnings
This table compares Organovo and Turnstone Biologics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Organovo | $73,000.00 | 94.40 | -$14.67 million | ($1.61) | -0.30 |
| Turnstone Biologics | $19.31 million | 0.72 | -$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.
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% |
Insider and Institutional Ownership
8.2% of Organovo shares are held by institutional investors. Comparatively, 52.5% of Turnstone Biologics shares are held by institutional investors. 4.0% of Organovo 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 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 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.