Financial Comparison: Valneva (NASDAQ:VALN) versus Organovo (NASDAQ:ONVO)

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

Volatility & Risk

Organovo has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Valneva has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500.

Institutional & Insider Ownership

8.2% of Organovo shares are held by institutional investors. Comparatively, 11.4% of Valneva shares are held by institutional investors. 3.7% of Organovo shares are held by insiders. Comparatively, 14.9% of Valneva shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Organovo and Valneva’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Organovo	-10,151.64%	-346.26%	-187.53%
Valneva	-4.35%	-3.93%	-1.42%

Valuation & Earnings

This table compares Organovo and Valneva”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organovo	$122,000.00	29.56	-$14.67 million	($10.20)	-0.21
Valneva	$169.58 million	2.87	-$109.78 million	($0.17)	-35.18

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Organovo and Valneva, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organovo	0	0	0	0	0.00
Valneva	0	0	2	0	3.00

Valneva has a consensus target price of $16.00, indicating a potential upside of 167.56%. Given Valneva’s stronger consensus rating and higher probable upside, analysts clearly believe Valneva is more favorable than Organovo.

Summary

Valneva beats Organovo on 11 of the 14 factors compared between the two stocks.

About Organovo

Organovo Holdings, Inc., a biotechnology company, focuses on developing 3D tissues that recapitulate key aspects of human disease. Its 3D human tissue platform includes its proprietary NovoGen Bioprinters, which are automated devices that enable the fabrication of 3D living tissues comprised mammalian cells; and related technologies for preparing bio-inks and bioprinting multicellular tissues with complex architecture. The company offers ExVive 3D bioprinted human liver tissue with distinct hepatocellular and non-parenchymal cell compartments. The company was incorporated in 2007 and is headquartered in San Diego, California.

About Valneva

Valneva SE, a specialty vaccine company, develops, manufactures, and commercializes prophylactic vaccines for infectious diseases with unmet needs. It offers IXIARO, an inactivated Vero cell culture-derived Japanese encephalitis vaccine indicated for active immunization against Japanese encephalitis; DUKORAL, an oral vaccine for the prevention of diarrhea caused by Vibrio cholera and/or heat-labile toxin producing enterotoxigenic Escherichia coli bacterium; IXCHIQ, a single-dose, live-attenuated vaccine for the prevention of disease caused by chikungunya virus; and VLA2001, an inactivated whole-virus COVID-19 vaccine. The company also develops VLA15, a vaccine candidate, which is in Phase III clinical trial against Borrelia, the bacterium that causes Lyme disease; VLA1553, a vaccine candidate, which is in Phase III clinical trial against the chikungunya virus; VLA1554, a vaccine candidate targeting human metapneumovirus; and VLA2112, a vaccine candidate to treat patients with epstein-barr virus. It sells its products in the United States, Canada, Germany, Austria, Nordics, the United Kingdom, France, rest of European countries, and internationally. Valneva SE has collaborations with Pfizer, Inc. to co-develop and commercialize its Lyme disease vaccine; and Instituto Butantan for the development, manufacturing, and marketing of single-shot chikungunya vaccine. The company was founded in 1998 and is based in Saint-Herblain, France.