Contrasting Organovo (NASDAQ:ONVO) and Kymera Therapeutics (NASDAQ:KYMR)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Organovo	N/A	-195.52%	-142.62%
Kymera Therapeutics	-194.67%	-31.92%	-23.98%

Insider & Institutional Ownership

8.2% of Organovo shares are held by institutional investors. 5.0% of Organovo shares are held by insiders. Comparatively, 15.8% of Kymera Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Organovo has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Kymera Therapeutics has a beta of 2.25, meaning that its share price is 125% more volatile than the S&P 500.

Earnings and Valuation

This table compares Organovo and Kymera Therapeutics’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organovo	$109,000.00	99.88	-$14.67 million	($2.17)	-0.35
Kymera Therapeutics	$78.59 million	23.34	-$146.96 million	($2.51)	-11.91

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Organovo and Kymera Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organovo	0	0	0	0	N/A
Kymera Therapeutics	0	6	6	0	2.50

Kymera Therapeutics has a consensus price target of $42.70, indicating a potential upside of 42.86%. Given Kymera Therapeutics’ higher probable upside, analysts clearly believe Kymera Therapeutics is more favorable than Organovo.

Summary

Kymera Therapeutics beats Organovo on 7 of the 13 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 Kymera Therapeutics

Kymera Therapeutics, Inc., a biopharmaceutical company, focuses on discovering and developing novel small molecule therapeutics that selectively degrade disease-causing proteins by harnessing the body's own natural protein degradation system. It engages in developing IRAK4 program, which is in Phase II clinical trial for the treatment of immunology-inflammation diseases, including hidradenitis suppurativa, atopic dermatitis; STAT3 program for the treatment of hematologic malignancies and solid tumors, as well as autoimmune diseases and fibrosis; and MDM2 program to treat hematological malignancies and solid tumors. The company develops STAT6, a Type 2 inflammation in allergic diseases; and TYK2, a treatment for inflammatory bowel disease, psoriasis, psoriatic arthritis, and lupus. The company was incorporated in 2015 and is headquartered in Watertown, Massachusetts.