Critical Review: Kymera Therapeutics (NASDAQ:KYMR) vs. Organovo (NASDAQ:ONVO)

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

Profitability

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

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kymera Therapeutics	$78.59 million	23.31	-$146.96 million	($2.51)	-11.89
Organovo	$110,000.00	99.56	-$14.67 million	($1.61)	-0.47

Organovo has lower revenue, but higher earnings 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 Recommendations

This is a summary of current ratings for Kymera Therapeutics and Organovo, as provided by MarketBeat.com.

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

Kymera Therapeutics presently has a consensus target price of $42.70, suggesting a potential upside of 43.05%. Given Kymera Therapeutics’ higher probable upside, equities research analysts plainly believe Kymera Therapeutics is more favorable than Organovo.

Volatility & Risk

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

Insider and Institutional Ownership

8.2% of Organovo shares are held by institutional investors. 15.8% of Kymera Therapeutics shares are held by insiders. Comparatively, 4.0% of Organovo shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Kymera Therapeutics beats Organovo on 7 of the 13 factors compared between the two stocks.

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.

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.