Critical Review: CARGO Therapeutics (CRGX) versus The Competition

CARGO Therapeutics (NASDAQ:CRGX) is one of 295 public companies in the “Biological products, except diagnostic” industry, but how does it weigh in compared to its competitors? We will compare CARGO Therapeutics to similar companies based on the strength of its analyst recommendations, institutional ownership, dividends, earnings, valuation, profitability and risk.

Profitability

This table compares CARGO Therapeutics and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CARGO Therapeutics	N/A	-50.68%	-38.69%
CARGO Therapeutics Competitors	-4,939.18%	-160.28%	-43.08%

Valuation and Earnings

This table compares CARGO Therapeutics and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CARGO Therapeutics	N/A	-$98.15 million	-0.44
CARGO Therapeutics Competitors	$549.29 million	-$36.47 million	-15.65

CARGO Therapeutics’ competitors have higher revenue and earnings than CARGO Therapeutics. CARGO Therapeutics is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and price targets for CARGO Therapeutics and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CARGO Therapeutics	0	0	7	0	3.00
CARGO Therapeutics Competitors	1702	5012	13045	255	2.59

CARGO Therapeutics presently has a consensus price target of $30.33, suggesting a potential upside of 35.66%. As a group, “Biological products, except diagnostic” companies have a potential upside of 55.32%. Given CARGO Therapeutics’ competitors higher probable upside, analysts clearly believe CARGO Therapeutics has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

93.2% of CARGO Therapeutics shares are held by institutional investors. Comparatively, 50.5% of shares of all “Biological products, except diagnostic” companies are held by institutional investors. 1.4% of CARGO Therapeutics shares are held by company insiders. Comparatively, 15.8% of shares of all “Biological products, except diagnostic” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

CARGO Therapeutics beats its competitors on 7 of the 12 factors compared.

About CARGO Therapeutics

CARGO Therapeutics, Inc., a clinical-stage biotechnology company, develops chimeric antigen receptor (CAR) T-cell therapies for cancer patients. The company's lead program is CRG-022, an autologous CD22 CAR T-cell product candidate designed to address resistance mechanisms by targeting CD22, an alternate tumor antigen that is expressed in B-cell malignancies. It also develops CRG-023, a tri-specific CAR T product candidate that targets tumor cells with three B-cell antigen targets. The company was formerly known as Syncopation Life Sciences, Inc. and changed its name to CARGO Therapeutics, Inc. in September 2022. CARGO Therapeutics, Inc. was incorporated in 2019 and is headquartered in San Mateo, California.