Critical Review: Alpha Cognition (NASDAQ:ACOG) versus Cognition Therapeutics (NASDAQ:CGTX)

Cognition Therapeutics (NASDAQ:CGTXGet Free Report) and Alpha Cognition (NASDAQ:ACOGGet Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.

Volatility and Risk

Cognition Therapeutics has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Alpha Cognition has a beta of 2.5, indicating that its stock price is 150% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Cognition Therapeutics and Alpha Cognition, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cognition Therapeutics 0 1 5 1 3.00
Alpha Cognition 0 0 1 0 3.00

Cognition Therapeutics currently has a consensus price target of $7.70, suggesting a potential upside of 1,592.68%. Alpha Cognition has a consensus price target of $20.00, suggesting a potential upside of 272.44%. Given Cognition Therapeutics’ higher probable upside, analysts clearly believe Cognition Therapeutics is more favorable than Alpha Cognition.

Insider & Institutional Ownership

43.3% of Cognition Therapeutics shares are held by institutional investors. 20.8% of Cognition Therapeutics shares are held by company insiders. Comparatively, 31.5% of Alpha Cognition shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Cognition Therapeutics and Alpha Cognition”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cognition Therapeutics N/A N/A -$25.79 million ($0.87) -0.52
Alpha Cognition N/A N/A -$13.77 million ($2.56) -2.10

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

Profitability

This table compares Cognition Therapeutics and Alpha Cognition’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cognition Therapeutics N/A -150.93% -100.82%
Alpha Cognition N/A N/A -344.17%

Summary

Cognition Therapeutics beats Alpha Cognition on 7 of the 11 factors compared between the two stocks.

About Cognition Therapeutics

(Get Free Report)

Cognition Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of small molecule therapeutics targeting age-related degenerative diseases and disorders of the central nervous system and retina. Its lead product candidate is CT1812, an orally delivered molecule modulator designed to penetrate the blood-brain barrier and bind selectively to the S2R complex, which is in Phase 2 clinical trial for the treatment of Alzheimer's disease, as well as geographic atrophy secondary to dry age-related macular degeneration and synucleinopathies, such as dementia with Lewy bodies. The company was incorporated in 2007 and is headquartered in Purchase, New York.

About Alpha Cognition

(Get Free Report)

Alpha Cognition, Inc. is a clinical stage biopharmaceutical company that develops treatments for underserved neurodegenerative diseases such as Alzheimer’s Dementia and Amyotrophic Lateral Sclerosis. The company was founded in 2000 and is headquartered in Vancouver, Canada.

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