Comparing Krystal Biotech (NASDAQ:KRYS) and Tourmaline Bio (NASDAQ:TRML)

Tourmaline Bio (NASDAQ:TRML) and Krystal Biotech (NASDAQ:KRYS) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Analyst Ratings

This is a breakdown of current ratings and target prices for Tourmaline Bio and Krystal Biotech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tourmaline Bio	0	0	6	0	3.00
Krystal Biotech	0	1	6	1	3.00

Tourmaline Bio currently has a consensus price target of $45.20, suggesting a potential upside of 169.69%. Krystal Biotech has a consensus price target of $220.00, suggesting a potential upside of 35.88%. Given Tourmaline Bio’s higher possible upside, analysts clearly believe Tourmaline Bio is more favorable than Krystal Biotech.

Earnings & Valuation

This table compares Tourmaline Bio and Krystal Biotech”s top-line 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	($2.87)	-5.84
Krystal Biotech	$290.52 million	16.11	$10.93 million	$2.99	54.15

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

Insider & Institutional Ownership

91.9% of Tourmaline Bio shares are owned by institutional investors. Comparatively, 86.3% of Krystal Biotech shares are owned by institutional investors. 11.0% of Tourmaline Bio shares are owned by insiders. Comparatively, 13.7% of Krystal Biotech shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Tourmaline Bio and Krystal Biotech’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%
Krystal Biotech	30.69%	11.41%	10.40%

Volatility & Risk

Tourmaline Bio has a beta of 2.14, meaning that its share price is 114% more volatile than the S&P 500. Comparatively, Krystal Biotech has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Summary

Krystal Biotech beats Tourmaline Bio on 9 of the 12 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 Krystal Biotech

Krystal Biotech, Inc., a commercial-stage biotechnology company, discovers, develops, and commercializes genetic medicines for patients with rare diseases in the United States. It commercializes VYJUVEK (beremagene geperpavec-svdt, or B-VEC) for the treatment of dystrophic epidermolysis bullosa (DEB). The company also develops KB105, which is in Phase 1/2 clinical trials for treating patients with deficient autosomal recessive congenital ichthyosis; KB104 for treating netherton syndrome; KB407 that is in Phase 1 clinical trials for treating cystic fibrosis; KB707 that is in Phase 1 clinical trials for the treatment of anti-PD-1 relapsed/refractory; KB408, which is in Phase 1 clinical trials for treating Alpha-1 antitrypsin deficiency; and KB301 that is in Phase 2 clinical trials for treating aesthetic skin conditions, as well as in open label study with ophthalmic B-VEC for treating for ocular complications of deb. Krystal Biotech, Inc. was founded in 2016 and is headquartered in Pittsburgh, Pennsylvania.