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

Profitability

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

Net Margins Return on Equity Return on Assets
Organovo Holdings -918.97% -65.49% -60.15%
Galectin Therapeutics N/A -1,747.01% -134.48%

Valuation & Earnings

This table compares Organovo Holdings and Galectin Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Organovo Holdings $4.33 million 38.23 -$38.77 million ($0.39) -4.00
Galectin Therapeutics N/A N/A -$19.47 million ($0.61) -4.21

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

Risk and Volatility

Organovo Holdings has a beta of 3.02, suggesting that its stock price is 202% more volatile than the S&P 500. Comparatively, Galectin Therapeutics has a beta of 2.64, suggesting that its stock price is 164% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Organovo Holdings and Galectin Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Organovo Holdings 0 0 4 0 3.00
Galectin Therapeutics 0 1 2 0 2.67

Organovo Holdings currently has a consensus target price of $6.94, indicating a potential upside of 344.71%. Galectin Therapeutics has a consensus target price of $3.50, indicating a potential upside of 36.19%. Given Organovo Holdings’ stronger consensus rating and higher possible upside, equities analysts plainly believe Organovo Holdings is more favorable than Galectin Therapeutics.

Institutional & Insider Ownership

23.9% of Organovo Holdings shares are owned by institutional investors. Comparatively, 11.2% of Galectin Therapeutics shares are owned by institutional investors. 10.2% of Organovo Holdings shares are owned by insiders. Comparatively, 40.3% of Galectin Therapeutics shares are owned 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

Organovo Holdings beats Galectin Therapeutics on 9 of the 12 factors compared between the two stocks.

Organovo Holdings Company Profile

Organovo Holdings, Inc. is an early commercial-stage company focused on developing and commercializing functional human tissues. The Company focuses on the generation of three-dimensional (3D) human tissues, by utilizing its platform technology to create human tissue constructs in 3D. It is focused on development of products, including 3D human tissues used for the preclinical assessment of drug effects, including applications in predictive toxicology, absorption, distribution, metabolism, excretion (ADME), and drug metabolism and pharmacokinetics (DMPK); customized human tissues as living, dynamic models of human biology or disease, for use in drug discovery and development, and three-dimensional human tissues for clinical applications, such as blood vessels for bypass grafting, nerve grafts for nerve damage repair and functional tissue patches for the repair or replacement of damaged tissues and organs.

Galectin Therapeutics Company Profile

Galectin Therapeutics Inc. is a clinical-stage biopharmaceutical company engaged in drug research and development to create therapies for fibrotic disease and cancer. The Company’s drug candidates are based on its method of targeting galectin proteins, which are mediators of biologic and pathologic functions. It uses naturally occurring, readily-available plant materials as starting material in manufacturing processes to create complex carbohydrates with specific molecular weights and other pharmaceutical properties. The Company has two product candidates, GR-MD-02 and GM-CT-01. The Company’s galectin-3 inhibitor is GR-MD-02. The Company is focusing on development of GR-MD-02 intended to be used in the treatment of liver fibrosis associated with fatty liver disease (NASH), moderate to severe plaque psoriasis and in cancer therapy in combination with immune-system modifying agent(s). GM-CT-01 is a compound that continues to be explored in preclinical studies.

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