Financial Analysis: Black Diamond Therapeutics (NASDAQ:BDTX) versus Cognition Therapeutics (NASDAQ:CGTX)

Cognition Therapeutics (NASDAQ:CGTXGet Free Report) and Black Diamond Therapeutics (NASDAQ:BDTXGet Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Institutional and Insider Ownership

43.4% of Cognition Therapeutics shares are owned by institutional investors. Comparatively, 95.5% of Black Diamond Therapeutics shares are owned by institutional investors. 23.8% of Cognition Therapeutics shares are owned by company insiders. Comparatively, 9.1% of Black Diamond Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Cognition Therapeutics and Black Diamond Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cognition Therapeutics N/A N/A -$25.79 million ($0.86) -2.14
Black Diamond Therapeutics N/A N/A -$82.44 million ($1.88) -2.80

Black Diamond Therapeutics is trading at a lower price-to-earnings ratio than Cognition Therapeutics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Cognition Therapeutics and Black Diamond Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cognition Therapeutics 0 0 3 0 3.00
Black Diamond Therapeutics 0 0 4 0 3.00

Cognition Therapeutics presently has a consensus price target of $6.67, suggesting a potential upside of 262.32%. Black Diamond Therapeutics has a consensus price target of $12.25, suggesting a potential upside of 132.89%. Given Cognition Therapeutics’ higher probable upside, equities analysts plainly believe Cognition Therapeutics is more favorable than Black Diamond Therapeutics.

Profitability

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

Net Margins Return on Equity Return on Assets
Cognition Therapeutics N/A -83.48% -63.07%
Black Diamond Therapeutics N/A -76.43% -56.24%

Volatility and Risk

Cognition Therapeutics has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, Black Diamond Therapeutics has a beta of 2.64, suggesting that its stock price is 164% more volatile than the S&P 500.

About Cognition Therapeutics

(Get Free Report)

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 for the treatment of Alzheimer's disease. The company is also developing COG0201 SHINE, a randomized double-blind and placebo-controlled for mild-to-moderate AD and is in phase II clinical trial. Its product pipeline also includes CT2168 for Synucleinopathies; and CT2074 for dry age-related macular degeneration. The company was incorporated in 2007 and is headquartered in Purchase, New York.

About Black Diamond Therapeutics

(Get Free Report)

Black Diamond Therapeutics, Inc., a clinical-stage oncology medicine company, focuses on the discovery and development of MasterKey therapies for patients with genetically defined tumors. The company's lead product candidate is BDTX-1535, a brain-penetrant epidermal growth factor receptor MasterKey inhibitor, which is in phase 2 clinical trial for the treatment of epidermal growth factor receptor mutant non-small cell lung cancer, as well as phase 1 clinical trial to treat glioblastoma. It is also developing BDTX-4933, a brain-penetrant RAF MasterKey inhibitor targeting KRAS, NRAS, and BRAF alterations in solid tumors that is in phase 1 clinical trial. In addition, the company is developing BDTX-4876, a MasterKey inhibitor of oncogenic FGFR2/3 mutations with selectivity versus FGFR1/4, which is in preclinical stage. The company was formerly known as ASET Therapeutics, Inc. and changed its name to Black Diamond Therapeutics, Inc. in January 2018. Black Diamond Therapeutics, Inc. was incorporated in 2014 and is headquartered in Cambridge, Massachusetts.

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