Reviewing Nuvalent (NASDAQ:NUVL) & Tempest Therapeutics (NASDAQ:TPST)

Nuvalent (NASDAQ:NUVL) and Tempest Therapeutics (NASDAQ:TPST) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Analyst Ratings

This is a summary of recent recommendations and price targets for Nuvalent and Tempest Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nuvalent	1	0	8	1	2.90
Tempest Therapeutics	0	2	2	0	2.50

Nuvalent presently has a consensus target price of $115.50, suggesting a potential upside of 50.49%. Tempest Therapeutics has a consensus target price of $30.00, suggesting a potential upside of 321.94%. Given Tempest Therapeutics’ higher possible upside, analysts plainly believe Tempest Therapeutics is more favorable than Nuvalent.

Volatility and Risk

Nuvalent has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Tempest Therapeutics has a beta of -2.34, suggesting that its share price is 334% less volatile than the S&P 500.

Profitability

This table compares Nuvalent and Tempest Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nuvalent	N/A	-28.63%	-27.15%
Tempest Therapeutics	N/A	-187.44%	-82.61%

Institutional and Insider Ownership

97.3% of Nuvalent shares are held by institutional investors. Comparatively, 22.5% of Tempest Therapeutics shares are held by institutional investors. 12.5% of Nuvalent shares are held by insiders. Comparatively, 4.7% of Tempest Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Nuvalent and Tempest Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nuvalent	N/A	N/A	-$126.22 million	($3.90)	-19.68
Tempest Therapeutics	N/A	N/A	-$29.49 million	($19.51)	-0.36

Nuvalent is trading at a lower price-to-earnings ratio than Tempest Therapeutics, indicating that it is currently the more affordable of the two stocks.

Summary

Nuvalent beats Tempest Therapeutics on 9 of the 12 factors compared between the two stocks.

About Nuvalent

Nuvalent, Inc., a clinical stage biopharmaceutical company, engages in the development of therapies for patients with cancer. Its lead product candidates are NVL-520, a novel ROS1-selective inhibitor to address the clinical challenges of emergent treatment resistance, central nervous system (CNS)-related adverse events, and brain metastases that may limit the use of ROS1 tyrosine kinase inhibitors (TKIs) for patients with ROS proto-oncogene 1 (ROS1)-positive non-small cell lung cancer (NSCLC) which is under the phase 2 portion of the ARROS-1 Phase 1/2 clinical trial; NVL-655, a brain-penetrant ALK-selective inhibitor, to address the clinical challenges of emergent treatment resistance, CNS-related adverse events, and brain metastases that might limit the use of first-, second-, and third-generation ALK inhibitors that is under the phase 2 portion of the ALKOVE-1 Phase 1/2 clinical trial; and NVL-330, a brain-penetrant human epidermal growth factor receptor 2 (HER2)-selective inhibitor designed to treat tumors driven by HER2ex20, brain metastases, and avoiding treatment-limiting adverse events including due to off-target inhibition of wild-type EGFR, which is expected to initiate phase 1 trial. The company was incorporated in 2017 and is headquartered in Cambridge, Massachusetts.

About Tempest Therapeutics

Tempest Therapeutics, Inc., a clinical-stage oncology company, develops small molecule therapeutics that combine both tumor-targeted and immune-mediated mechanisms to treat various tumors. The company's two clinical programs are TPST-1495, a dual antagonist of EP2 and EP4, receptors of prostaglandin E2, which is in a Phase 1 trial to treat cancer; and TPST-1120, a selective antagonist of peroxisome proliferator-activated receptor alpha that is in a Phase 1 trial for the treatment of solid tumors. It also develops TREX-1, an enzyme that regulates cGAS/STING pathway signaling and immune recognition. Tempest Therapeutics, Inc. was incorporated in 2011 and is headquartered in Brisbane, California. Tempest Therapeutics, Inc. operates as a subsidiary of Inception Sciences, Inc.