Contrasting Cognition Therapeutics (NASDAQ:CGTX) and Alpha Cognition (NASDAQ:ACOG)

Alpha Cognition (NASDAQ:ACOG) and Cognition Therapeutics (NASDAQ:CGTX) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Profitability

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

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

Institutional & Insider Ownership

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

Risk and Volatility

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Alpha Cognition and Cognition Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Cognition	0	0	1	0	3.00
Cognition Therapeutics	0	1	4	1	3.00

Alpha Cognition currently has a consensus price target of $20.00, suggesting a potential upside of 261.66%. Cognition Therapeutics has a consensus price target of $7.13, suggesting a potential upside of 1,613.98%. Given Cognition Therapeutics’ higher possible upside, analysts plainly believe Cognition Therapeutics is more favorable than Alpha Cognition.

Valuation & Earnings

This table compares Alpha Cognition and Cognition Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Cognition	N/A	N/A	-$13.77 million	($2.56)	-2.16
Cognition Therapeutics	N/A	N/A	-$25.79 million	($0.87)	-0.48

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.

Summary

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

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.

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.