Analyzing X4 Pharmaceuticals (NASDAQ:XFOR) and Tourmaline Bio (NASDAQ:TRML)

Tourmaline Bio (NASDAQ:TRML) and X4 Pharmaceuticals (NASDAQ:XFOR) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Profitability

This table compares Tourmaline Bio and X4 Pharmaceuticals’ 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%
X4 Pharmaceuticals	N/A	-236.19%	-75.14%

Volatility and Risk

Tourmaline Bio has a beta of 2.32, indicating that its share price is 132% more volatile than the S&P 500. Comparatively, X4 Pharmaceuticals has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Tourmaline Bio and X4 Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tourmaline Bio	0	0	6	0	3.00
X4 Pharmaceuticals	0	0	3	0	3.00

Tourmaline Bio presently has a consensus target price of $54.00, indicating a potential upside of 342.26%. X4 Pharmaceuticals has a consensus target price of $3.50, indicating a potential upside of 649.30%. Given X4 Pharmaceuticals’ higher probable upside, analysts plainly believe X4 Pharmaceuticals is more favorable than Tourmaline Bio.

Insider and Institutional Ownership

91.9% of Tourmaline Bio shares are owned by institutional investors. Comparatively, 72.0% of X4 Pharmaceuticals shares are owned by institutional investors. 11.0% of Tourmaline Bio shares are owned by company insiders. Comparatively, 1.6% of X4 Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Tourmaline Bio and X4 Pharmaceuticals”s gross revenue, earnings per share (EPS) 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)	-4.33
X4 Pharmaceuticals	N/A	N/A	-$101.17 million	($0.09)	-5.19

X4 Pharmaceuticals 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 X4 Pharmaceuticals on 8 of the 10 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 X4 Pharmaceuticals

X4 Pharmaceuticals, Inc., a late-stage clinical biopharmaceutical company, focuses on the research, development, and commercialization of novel therapeutics for the treatment of rare diseases. Its lead product candidate is mavorixafor, a small molecule inhibitor of the chemokine receptor C-X-C chemokine receptor type 4 (CXCR4), which is in Phase III clinical trial for the treatment of patients with warts, hypogammaglobulinemia, infections, and myelokathexis syndrome; and Phase II clinical trial to treat congenital, idiopathic, or cyclic neutropenia. The company is also developing X4P-003, a CXCR4 antagonist for the treatment of CXCR4 dependent disorders and primary immunodeficiencies; and X4P-002, a CXCR4 antagonist for the treatment of blood-brain barrier diseases. It has a license agreement with Abbisko Therapeutics Co Ltd. to develop, manufacture, and commercialize mavorixafor in combination with checkpoint inhibitors or other agents in oncology indications. The company is headquartered in Boston, Massachusetts.