Head to Head Survey: Korro Bio (NASDAQ:KRRO) and Xilio Therapeutics (NASDAQ:XLO)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Xilio Therapeutics and Korro Bio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xilio Therapeutics	1	0	0	0	1.00
Korro Bio	1	2	6	3	2.92

Korro Bio has a consensus price target of $16.50, suggesting a potential upside of 87.29%. Given Korro Bio’s stronger consensus rating and higher possible upside, analysts plainly believe Korro Bio is more favorable than Xilio Therapeutics.

Volatility and Risk

Xilio Therapeutics has a beta of -0.15, suggesting that its share price is 115% less volatile than the S&P 500. Comparatively, Korro Bio has a beta of 3.13, suggesting that its share price is 213% more volatile than the S&P 500.

Institutional and Insider Ownership

54.3% of Xilio Therapeutics shares are held by institutional investors. Comparatively, 13.2% of Korro Bio shares are held by institutional investors. 7.4% of Xilio Therapeutics shares are held by company insiders. Comparatively, 4.8% of Korro Bio shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xilio Therapeutics	-34.06%	-71.99%	-20.43%
Korro Bio	N/A	-114.26%	-68.57%

Earnings & Valuation

This table compares Xilio Therapeutics and Korro Bio”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xilio Therapeutics	$43.77 million	1.39	-$35.04 million	($1.64)	-5.62
Korro Bio	$6.39 million	20.31	-$117.26 million	($10.00)	-0.88

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

About Xilio Therapeutics

Xilio Therapeutics, Inc., a clinical-stage biotechnology company, engages in the discovery and development of tumor-activated immuno-oncology therapies. The company’s checkpoint inhibitor program includes XTX101, an investigational Fc-enhanced, tumor-activated anti-CTLA-4 mAb that is in Phase 2 clinical trial for patients with advanced solid tumors. It also develops cytokine programs, which comprises XTX202, a tumor-activated beta-gamma biased IL-2, currently under Phase 2 clinal trials; and XTX301, an investigational tumor-activated, engineered IL-12 molecule, currently under Phase 1 studies. The company was founded in 2016 and is headquartered in Waltham, Massachusetts.

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.