Cognition Therapeutics (NASDAQ:CGTX) & Editas Medicine (NASDAQ:EDIT) Head to Head Contrast

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

Valuation & Earnings

This table compares Editas Medicine and Cognition Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Editas Medicine	$61.76 million	1.60	-$153.22 million	($2.56)	-0.47
Cognition Therapeutics	N/A	N/A	-$25.79 million	($0.97)	-0.78

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

Insider & Institutional Ownership

71.9% of Editas Medicine shares are held by institutional investors. Comparatively, 43.3% of Cognition Therapeutics shares are held by institutional investors. 1.9% of Editas Medicine 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Editas Medicine	-340.96%	-80.13%	-50.99%
Cognition Therapeutics	N/A	-150.93%	-100.82%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Editas Medicine and Cognition Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Editas Medicine	2	9	3	0	2.07
Cognition Therapeutics	0	1	5	0	2.83

Editas Medicine presently has a consensus target price of $7.00, suggesting a potential upside of 485.77%. Cognition Therapeutics has a consensus target price of $8.30, suggesting a potential upside of 992.11%. Given Cognition Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Cognition Therapeutics is more favorable than Editas Medicine.

Risk & Volatility

Editas Medicine has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500. Comparatively, Cognition Therapeutics has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Summary

Cognition Therapeutics beats Editas Medicine on 7 of the 13 factors compared between the two stocks.

About Editas Medicine

Editas Medicine, Inc., a clinical stage genome editing company, focuses on developing transformative genomic medicines to treat a range of serious diseases. It develops a proprietary gene editing platform based on CRISPR technology. The company develops EDIT-101, which is in Phase 1/2 BRILLIANCE trial for Leber Congenital Amaurosis; and reni-cel, a clinical development gene-edited medicine to treat sickle cell disease and transfusion-dependent beta-thalassemia. In addition, the company is developing alpha-beta T cells for solid and liquid tumors; and gamma delta T cell therapies to treat cancer. It has a research collaboration with Juno Therapeutics, Inc. to develop engineered T cells for cancer; strategic alliance and option agreement with Allergan Pharmaceuticals International Limited. The company was formerly known as Gengine, Inc. and changed its name to Editas Medicine, Inc. in November 2013. Editas Medicine, Inc. was incorporated in 2013 and is based in Cambridge, Massachusetts.

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.