Immatics (NASDAQ:IMTX) and Tourmaline Bio (NASDAQ:TRML) Critical Analysis

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

Analyst Ratings

This is a summary of recent ratings for Tourmaline Bio and Immatics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tourmaline Bio	0	0	7	0	3.00
Immatics	0	0	4	1	3.20

Tourmaline Bio presently has a consensus price target of $54.67, indicating a potential upside of 346.26%. Immatics has a consensus price target of $16.67, indicating a potential upside of 258.42%. Given Tourmaline Bio’s higher probable upside, analysts plainly believe Tourmaline Bio is more favorable than Immatics.

Profitability

This table compares Tourmaline Bio and Immatics’ 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%
Immatics	-47.94%	-15.90%	-9.38%

Volatility and Risk

Tourmaline Bio has a beta of 2.32, meaning that its share price is 132% more volatile than the S&P 500. Comparatively, Immatics has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Insider & Institutional Ownership

91.9% of Tourmaline Bio shares are held by institutional investors. Comparatively, 64.4% of Immatics shares are held by institutional investors. 11.0% of Tourmaline Bio shares are held by company insiders. Comparatively, 3.3% of Immatics shares are held 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.

Earnings and Valuation

This table compares Tourmaline Bio and Immatics”s gross revenue, earnings per share 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)	-4.34
Immatics	$58.44 million	9.50	-$104.98 million	($0.66)	-7.05

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

Summary

Tourmaline Bio beats Immatics on 8 of the 14 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 Immatics

Immatics N.V., a clinical-stage biopharmaceutical company, focuses on the research and development of potential T cell redirecting immunotherapies for the treatment of cancer in the United States. The company is developing targeted immunotherapies with a focus on treating solid tumors through two distinct treatment modalities, such as TCR-engineered autologous or allogeneic adoptive cell therapies (ACT) and antibody-like TCR Bispecifics. Its products pipeline includes IMA203 that targets solid tumors, which is in Phase 1b clinical trial; IMA203CD8, a cell therapy product that is in Phase 1b clinical trial; IMA204 that targets tumor stroma, which is in preclinical stage; and IMA30x, an allogenic cellular therapy product candidate, which is in preclinical stage. The company also develops TCR Bispecifics products, including IMA401 and IMA402, which is in Phase 1a clinical trial. The company has a strategic collaboration agreement with MD Anderson Cancer Center to develop multiple T cell and TCR-based adoptive cellular therapies; Celgene Corporation to develop novel adoptive cell therapies targeting multiple cancers; and Genmab A/S to develop T cell engaging bispecific immunotherapies targeting multiple cancer indications. Immatics N.V. is headquartered in Tübingen, Germany.