Head-To-Head Survey: Tourmaline Bio (NASDAQ:TRML) vs. Passage Bio (NASDAQ:PASG)

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Passage Bio and Tourmaline Bio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Passage Bio	0	0	4	0	3.00
Tourmaline Bio	0	0	6	0	3.00

Passage Bio presently has a consensus price target of $7.75, suggesting a potential upside of 1,393.26%. Tourmaline Bio has a consensus price target of $54.00, suggesting a potential upside of 301.04%. Given Passage Bio’s higher probable upside, analysts plainly believe Passage Bio is more favorable than Tourmaline Bio.

Earnings and Valuation

This table compares Passage Bio and Tourmaline Bio”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Passage Bio	N/A	N/A	-$102.06 million	($1.17)	-0.44
Tourmaline Bio	N/A	N/A	-$42.12 million	($2.82)	-4.77

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

Volatility & Risk

Passage Bio has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Tourmaline Bio has a beta of 2.32, meaning that its stock price is 132% more volatile than the S&P 500.

Profitability

This table compares Passage Bio and Tourmaline Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Passage Bio	N/A	-72.53%	-52.10%
Tourmaline Bio	N/A	-20.97%	-20.56%

Institutional and Insider Ownership

53.5% of Passage Bio shares are owned by institutional investors. Comparatively, 91.9% of Tourmaline Bio shares are owned by institutional investors. 4.3% of Passage Bio shares are owned by company insiders. Comparatively, 11.0% of Tourmaline Bio shares are owned by company 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

Tourmaline Bio beats Passage Bio on 7 of the 10 factors compared between the two stocks.

About Passage Bio

Passage Bio, Inc., a genetic medicines company, develops gene therapies for central nervous system diseases. It develops PBGM01, a functional GLB1 gene encoding ß-galactosidase for infantile GM1; PBFT02, a functional granulin (GRN) and gene encoding progranulin (PGRN) for the treatment of FTD caused by progranulin deficiency; and PBKR03, a functional GALC gene encoding the hydrolytic enzyme galactosylceramidase for infantile Krabbe disease. The company develops PBML04 for the treatment of metachromatic leukodystrophy; PBAL05 for the treatment of amyotrophic lateral sclerosis; and other program for huntington's disease. It has a strategic research collaboration with the Trustees of the University of Pennsylvania's Gene Therapy Program; and collaboration agreement, and a development services and clinical supply agreement with Catalent Maryland, Inc. Passage Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.

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.