Reviewing Cognition Therapeutics (NASDAQ:CGTX) and VectivBio (NASDAQ:VECT)

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

Institutional and Insider Ownership

43.3% of Cognition Therapeutics shares are held by institutional investors. 20.8% of Cognition Therapeutics shares are held by insiders. Comparatively, 9.7% of VectivBio shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cognition Therapeutics	N/A	-118.11%	-84.49%
VectivBio	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for Cognition Therapeutics and VectivBio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cognition Therapeutics	0	2	4	0	2.67
VectivBio	0	0	0	0	N/A

Cognition Therapeutics presently has a consensus target price of $8.00, indicating a potential upside of 1,898.50%. Given Cognition Therapeutics’ higher possible upside, equities research analysts clearly believe Cognition Therapeutics is more favorable than VectivBio.

Volatility & Risk

Cognition Therapeutics has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, VectivBio has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.

Valuation & Earnings

This table compares Cognition Therapeutics and VectivBio”s 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	($0.92)	-0.44
VectivBio	$27.34 million	20.97	-$93.74 million	N/A	N/A

Cognition Therapeutics has higher earnings, but lower revenue than VectivBio.

Summary

Cognition Therapeutics beats VectivBio on 6 of the 9 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 VectivBio

VectivBio Holding AG, a clinical stage biopharmaceutical company, focuses on the discovery, development, and commercialization of medicines for treatments of severe rare conditions. It develops apraglutide, a long-acting synthetic peptide analog of glucagon-like peptide-2 that is in Phase III clinical trial for the treatment of patients with short bowel syndrome-intestinal failure (SBS-IF), as well as apraglutide is in Phase II clinical trial for SBS-IF in patients with colon-in-continuity anatomy. The company is also developing apraglutide, which is in Phase II clinical trial for patients with steroid-refractory gastrointestinal acute versus host disease (aGvHD). VectivBio Holding AG was incorporated in 2019 and is headquartered in Basel, Switzerland. As of June 29, 2023, VectivBio Holding AG operates as a subsidiary of Ironwood Pharmaceuticals, Inc.