Critical Contrast: Xilio Therapeutics (NASDAQ:XLO) vs. TELA Bio (NASDAQ:TELA)

Xilio Therapeutics (NASDAQ:XLO) and TELA Bio (NASDAQ:TELA) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xilio Therapeutics	$43.77 million	1.14	-$35.04 million	($5.49)	-1.52
TELA Bio	$80.28 million	0.61	-$38.83 million	($0.83)	-1.31

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

Profitability

This table compares Xilio Therapeutics and TELA Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xilio Therapeutics	-80.05%	-393.01%	-33.59%
TELA Bio	-48.37%	-433.58%	-53.00%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Xilio Therapeutics and TELA Bio, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xilio Therapeutics	1	0	0	1	2.50
TELA Bio	1	1	3	0	2.40

Xilio Therapeutics presently has a consensus price target of $28.00, indicating a potential upside of 236.13%. TELA Bio has a consensus price target of $2.20, indicating a potential upside of 101.83%. Given Xilio Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Xilio Therapeutics is more favorable than TELA Bio.

Insider & Institutional Ownership

54.3% of Xilio Therapeutics shares are owned by institutional investors. Comparatively, 94.4% of TELA Bio shares are owned by institutional investors. 9.0% of Xilio Therapeutics shares are owned by company insiders. Comparatively, 4.7% of TELA Bio shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Xilio Therapeutics has a beta of -0.16, suggesting that its stock price is 116% less volatile than the S&P 500. Comparatively, TELA Bio has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

Summary

Xilio Therapeutics beats TELA Bio on 8 of the 15 factors compared between the two stocks.

About Xilio Therapeutics

Xilio Therapeutics, Inc., a clinical-stage biotechnology company, engages in the discovery and development of tumor-activated immuno-oncology therapies. The company’s checkpoint inhibitor program includes XTX101, an investigational Fc-enhanced, tumor-activated anti-CTLA-4 mAb that is in Phase 2 clinical trial for patients with advanced solid tumors. It also develops cytokine programs, which comprises XTX202, a tumor-activated beta-gamma biased IL-2, currently under Phase 2 clinal trials; and XTX301, an investigational tumor-activated, engineered IL-12 molecule, currently under Phase 1 studies. The company was founded in 2016 and is headquartered in Waltham, Massachusetts.

About TELA Bio

TELA Bio, Inc., a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. The company provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs. It markets its products through a single direct sales force, principally in the United States. The company was incorporated in 2012 and is headquartered in Malvern, Pennsylvania.