Head to Head Contrast: Korro Bio (NASDAQ:KRRO) & Tourmaline Bio (NASDAQ:TRML)

Korro Bio (NASDAQ:KRRO) and Tourmaline Bio (NASDAQ:TRML) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Risk & Volatility

Korro Bio has a beta of 2.66, meaning that its stock price is 166% more volatile than the S&P 500. Comparatively, Tourmaline Bio has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500.

Earnings & Valuation

This table compares Korro Bio and Tourmaline Bio”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Korro Bio	$2.27 million	136.18	-$83.58 million	($9.75)	-3.38
Tourmaline Bio	N/A	N/A	-$73.21 million	($3.43)	-8.80

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

Insider and Institutional Ownership

13.2% of Korro Bio shares are owned by institutional investors. Comparatively, 91.9% of Tourmaline Bio shares are owned by institutional investors. 4.6% of Korro Bio shares are owned by company insiders. Comparatively, 13.0% of Tourmaline Bio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Korro Bio and Tourmaline Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Korro Bio	N/A	-61.51%	-42.87%
Tourmaline Bio	N/A	-30.50%	-29.63%

Analyst Recommendations

This is a summary of recent recommendations for Korro Bio and Tourmaline Bio, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Korro Bio	0	0	5	2	3.29
Tourmaline Bio	0	0	7	0	3.00

Korro Bio currently has a consensus price target of $86.83, indicating a potential upside of 163.77%. Tourmaline Bio has a consensus price target of $50.14, indicating a potential upside of 66.15%. Given Korro Bio’s stronger consensus rating and higher probable upside, equities analysts clearly believe Korro Bio is more favorable than Tourmaline Bio.

Summary

Tourmaline Bio beats Korro Bio on 7 of the 13 factors compared between the two stocks.

About Korro Bio

Korro Bio, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of genetic medicines based on editing RNA for the treatment of rare and highly prevalent diseases primarily in the United States. Its lead product candidate is KRRO-110 which is in preclinical trials for the treatment of Alpha-1 Antitrypsin Deficiency (AATD). It uses its RNA editing platform, OPERA to generate differentiated RNA editing product candidates. The company is also developing programs for Parkinson's disease, Amyotrophic lateral sclerosis, severe alcohol-associated hepatitis, and other subsets of pain. Korro Bio, Inc. was founded in 2018 and is based in Cambridge, Massachusetts.

About Tourmaline Bio

Tourmaline Bio, Inc. operates as a clinical biotechnology company that develops medicines for patients with life-altering immune and inflammatory diseases. It develops TOUR006, a human anti-IL-6 monoclonal antibody that selectively binds to interleukin-6, a key proinflammatory cytokine involved in the pathogenesis of many autoimmune and inflammatory disorders. The company's development pipeline comprises medicines and therapies for the atherosclerotic cardiovascular disease (ASCVD) and thyroid eye disease (TED). The company was formerly known as Tourmaline Bio, LLC and changed its name to Tourmaline Bio, Inc. in September 2022. Tourmaline Bio, Inc. was founded in 2021 and is headquartered in New York, New York.