Reviewing Terns Pharmaceuticals (NASDAQ:TERN) and Enliven Therapeutics (NASDAQ:ELVN)

Terns Pharmaceuticals (NASDAQ:TERN) and Enliven Therapeutics (NASDAQ:ELVN) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Insider and Institutional Ownership

98.3% of Terns Pharmaceuticals shares are held by institutional investors. Comparatively, 95.1% of Enliven Therapeutics shares are held by institutional investors. 15.1% of Terns Pharmaceuticals shares are held by company insiders. Comparatively, 29.2% of Enliven Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terns Pharmaceuticals	$1.00 million	530.03	-$90.21 million	($1.18)	-5.29
Enliven Therapeutics	N/A	N/A	-$71.58 million	($1.90)	-12.83

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

Risk & Volatility

Terns Pharmaceuticals has a beta of -0.32, suggesting that its stock price is 132% less volatile than the S&P 500. Comparatively, Enliven Therapeutics has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Terns Pharmaceuticals and Enliven Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terns Pharmaceuticals	0	1	4	0	2.80
Enliven Therapeutics	0	0	3	1	3.25

Terns Pharmaceuticals presently has a consensus target price of $30.70, indicating a potential upside of 391.99%. Enliven Therapeutics has a consensus target price of $37.00, indicating a potential upside of 51.76%. Given Terns Pharmaceuticals’ higher possible upside, analysts clearly believe Terns Pharmaceuticals is more favorable than Enliven Therapeutics.

Profitability

This table compares Terns Pharmaceuticals and Enliven Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terns Pharmaceuticals	N/A	-32.76%	-31.33%
Enliven Therapeutics	N/A	-29.46%	-27.33%

Summary

Enliven Therapeutics beats Terns Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

About Terns Pharmaceuticals

Terns Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops small-molecule product candidates for the treatment of oncology, metabolic dysfunction-associated steatohepatitis (MASH), and obesity. The company develops TERN-701, an allosteric BCR-ABL tyrosine kinase inhibitor (TKI) that is in phase 1 clinical trial for chronic myeloid leukemia (CML), a form of cancer that starts in bone marrow. It also develops TERN-501, a thyroid hormone receptor beta agonist with enhanced liver distribution and metabolic stability that is in Phase IIa clinical trial for the treatment of MASH; and TERN-601, a small-molecule Glucagon-Like Peptide-1 receptor agonist program that is intended to orally be administered for obesity. The company was incorporated in 2016 and is headquartered in Foster City, California.

About Enliven Therapeutics

Enliven Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery and development of small molecule inhibitors to help patients with cancer. The company’s lead product candidates comprise ELVN-001, which is being evaluated in a Phase 1 clinical trial in adults with chronic myeloid leukemia; and ELVN-002, a Phase 1 clinical trial in adults with solid tumors with HER2 alterations. The company is headquartered in Boulder, Colorado.