Cognition Therapeutics (NASDAQ:CGTX – Get Free Report) and Alpha Cognition (NASDAQ:ACOG – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.
Valuation & Earnings
This table compares Cognition Therapeutics and Alpha Cognition”s gross revenue, earnings per share (EPS) 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.
Volatility and Risk
Analyst Ratings
This is a summary of current recommendations and price targets for Cognition Therapeutics and Alpha Cognition, as reported 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 target price of $7.70, suggesting a potential upside of 1,592.68%. Alpha Cognition has a consensus target price of $20.00, suggesting a potential upside of 272.44%. Given Cognition Therapeutics’ higher possible upside, research analysts clearly believe Cognition Therapeutics is more favorable than Alpha Cognition.
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% |
Insider and Institutional Ownership
43.3% of Cognition Therapeutics shares are owned by institutional investors. 20.8% of Cognition Therapeutics shares are owned by company insiders. Comparatively, 31.5% of Alpha Cognition shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Cognition Therapeutics beats Alpha Cognition on 7 of the 11 factors compared between the two stocks.
About Cognition Therapeutics
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
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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