VectivBio (NASDAQ:VECT) and Tourmaline Bio (NASDAQ:TRML) Critical Review

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

Valuation & Earnings

This table compares Tourmaline Bio and VectivBio”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tourmaline Bio	N/A	N/A	-$42.12 million	($2.82)	-7.32
VectivBio	$27.34 million	20.97	-$93.74 million	N/A	N/A

Tourmaline Bio has higher earnings, but lower revenue than VectivBio.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Tourmaline Bio and VectivBio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tourmaline Bio	0	0	6	0	3.00
VectivBio	0	0	0	0	0.00

Tourmaline Bio presently has a consensus target price of $54.00, indicating a potential upside of 161.63%. Given Tourmaline Bio’s stronger consensus rating and higher possible upside, research analysts plainly believe Tourmaline Bio is more favorable than VectivBio.

Risk & Volatility

Tourmaline Bio has a beta of 2.32, indicating that its share price is 132% more volatile than the S&P 500. Comparatively, VectivBio has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500.

Insider & Institutional Ownership

91.9% of Tourmaline Bio shares are owned by institutional investors. 11.0% of Tourmaline Bio shares are owned by company insiders. Comparatively, 9.7% of VectivBio shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tourmaline Bio	N/A	-20.97%	-20.56%
VectivBio	N/A	N/A	N/A

Summary

Tourmaline Bio beats VectivBio on 7 of the 10 factors compared between the two stocks.

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.

About VectivBio

VectivBio Holding AG, a clinical stage biopharmaceutical company, focuses on the discovery, development, and commercialization of medicines for treatments of severe rare conditions. It develops apraglutide, a long-acting synthetic peptide analog of glucagon-like peptide-2 that is in Phase III clinical trial for the treatment of patients with short bowel syndrome-intestinal failure (SBS-IF), as well as apraglutide is in Phase II clinical trial for SBS-IF in patients with colon-in-continuity anatomy. The company is also developing apraglutide, which is in Phase II clinical trial for patients with steroid-refractory gastrointestinal acute versus host disease (aGvHD). VectivBio Holding AG was incorporated in 2019 and is headquartered in Basel, Switzerland. As of June 29, 2023, VectivBio Holding AG operates as a subsidiary of Ironwood Pharmaceuticals, Inc.