Reviewing Cabaletta Bio (NASDAQ:CABA) and Organovo (NASDAQ:ONVO)

Organovo (NASDAQ:ONVO) and Cabaletta Bio (NASDAQ:CABA) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Organovo and Cabaletta Bio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organovo	0	0	0	0	N/A
Cabaletta Bio	0	0	7	0	3.00

Cabaletta Bio has a consensus price target of $17.88, indicating a potential upside of 28.97%. Given Cabaletta Bio’s higher possible upside, analysts plainly believe Cabaletta Bio is more favorable than Organovo.

Valuation and Earnings

This table compares Organovo and Cabaletta Bio’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organovo	$370,000.00	26.16	-$17.26 million	($2.06)	-0.54
Cabaletta Bio	N/A	N/A	-$52.97 million	($1.73)	-8.01

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

Volatility and Risk

Organovo has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Cabaletta Bio has a beta of 2.55, indicating that its share price is 155% more volatile than the S&P 500.

Insider and Institutional Ownership

9.1% of Organovo shares are owned by institutional investors. 4.0% of Organovo shares are owned by insiders. Comparatively, 12.3% of Cabaletta Bio shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Organovo and Cabaletta Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Organovo	-4,061.12%	-97.16%	-82.09%
Cabaletta Bio	N/A	-50.38%	-46.27%

Summary

Cabaletta Bio beats Organovo on 8 of the 12 factors compared between the two stocks.

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.

About Cabaletta Bio

Cabaletta Bio, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of engineered T cell therapies for patients with B cell-mediated autoimmune diseases. The company's lead product candidate is DSG3-CAART, which is in Phase I clinical trial for the treatment of mucosal pemphigus vulgaris, an autoimmune blistering skin disease. Its product candidate pipeline also includes MuSK-CAART, a preclinical stage product to treat a subset of patients with myasthenia gravis; CABA-201, a 4-1BB-containing CD19-CAR T investigational therapy, for the treatment of severe autoimmune diseases; PLA2R-CAART, a discovery stage product to treat patients with PLA2R-associated membranous nephropathy; and DSG3/1-CAART, a discovery stage product for the treatment of mucocutaneous pemphigus vulgaris. It has a collaboration with the University of Pennsylvania and the Children's Hospital of Philadelphia. The company was formerly known as Tycho Therapeutics, Inc. and changed its name to Cabaletta Bio, Inc. in August 2018. Cabaletta Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.