Turnstone Biologics (NASDAQ:TSBX) versus Tourmaline Bio (NASDAQ:TRML) Critical Analysis

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

Valuation & Earnings

This table compares Turnstone Biologics and Tourmaline Bio’s gross 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	0.84	-$55.20 million	($10.14)	-0.07
Tourmaline Bio	N/A	N/A	-$42.12 million	($6.50)	-2.71

Tourmaline Bio has lower revenue, but higher earnings than Turnstone Biologics. Tourmaline Bio 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 Tourmaline Bio’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%
Tourmaline Bio	N/A	-19.50%	-19.04%

Analyst Recommendations

This is a breakdown of current ratings for Turnstone Biologics and Tourmaline Bio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Turnstone Biologics	0	0	2	0	3.00
Tourmaline Bio	0	0	6	0	3.00

Turnstone Biologics presently has a consensus target price of $6.88, indicating a potential upside of 885.66%. Tourmaline Bio has a consensus target price of $61.80, indicating a potential upside of 251.14%. Given Turnstone Biologics’ higher probable upside, equities analysts clearly believe Turnstone Biologics is more favorable than Tourmaline Bio.

Insider & Institutional Ownership

52.5% of Turnstone Biologics shares are held by institutional investors. Comparatively, 91.9% of Tourmaline Bio shares are held by institutional investors. 32.1% of Turnstone Biologics shares are held by insiders. Comparatively, 11.0% of Tourmaline Bio shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Tourmaline Bio beats Turnstone Biologics on 6 of the 10 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 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.