Reviewing Nuvalent (NASDAQ:NUVL) and OnKure Therapeutics (NASDAQ:OKUR)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Nuvalent and OnKure Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nuvalent	0	0	10	2	3.17
OnKure Therapeutics	0	0	4	2	3.33

Nuvalent presently has a consensus price target of $119.60, suggesting a potential upside of 46.91%. OnKure Therapeutics has a consensus price target of $32.33, suggesting a potential upside of 1,299.71%. Given OnKure Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe OnKure Therapeutics is more favorable than Nuvalent.

Valuation and Earnings

This table compares Nuvalent and OnKure 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	-$260.76 million	($4.39)	-18.54
OnKure Therapeutics	N/A	N/A	-$52.67 million	($5.26)	-0.44

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

Risk and Volatility

Nuvalent has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, OnKure Therapeutics has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Institutional & Insider Ownership

97.3% of Nuvalent shares are held by institutional investors. Comparatively, 91.0% of OnKure Therapeutics shares are held by institutional investors. 10.2% of Nuvalent shares are held by company insiders. Comparatively, 2.3% of OnKure Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nuvalent	N/A	-31.35%	-29.27%
OnKure Therapeutics	N/A	-49.13%	-45.72%

Summary

Nuvalent beats OnKure Therapeutics on 7 of the 11 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 OnKure Therapeutics

OnKure Therapeutics, Inc. engages in discovering and developing precision medicines that target biologically validated drivers of cancers underserved by available therapies. The company uses a structure and computational chemistry driven drug design platform, committed to improving clinical outcomes for patients by building a robust pipeline of small molecule drugs designed to selectively target specific mutations thought to be key drivers of cancer. It is headquartered in Boulder, CO.