Critical Analysis: Cidara Therapeutics (NASDAQ:CDTX) versus Neumora Therapeutics (NASDAQ:NMRA)

Cidara Therapeutics (NASDAQ:CDTX) and Neumora Therapeutics (NASDAQ:NMRA) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cidara Therapeutics	$1.28 million	130.77	-$22.93 million	($30.09)	-0.79
Neumora Therapeutics	N/A	N/A	-$235.93 million	($1.53)	-0.97

Cidara Therapeutics has higher revenue and earnings than Neumora Therapeutics. Neumora Therapeutics is trading at a lower price-to-earnings ratio than Cidara Therapeutics, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Cidara Therapeutics has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Neumora Therapeutics has a beta of 2.59, suggesting that its stock price is 159% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Cidara Therapeutics and Neumora Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cidara Therapeutics	0	0	4	2	3.33
Neumora Therapeutics	0	4	5	0	2.56

Cidara Therapeutics presently has a consensus price target of $34.20, indicating a potential upside of 44.55%. Neumora Therapeutics has a consensus price target of $10.14, indicating a potential upside of 580.73%. Given Neumora Therapeutics’ higher probable upside, analysts clearly believe Neumora Therapeutics is more favorable than Cidara Therapeutics.

Insider and Institutional Ownership

35.8% of Cidara Therapeutics shares are held by institutional investors. Comparatively, 47.7% of Neumora Therapeutics shares are held by institutional investors. 7.6% of Cidara Therapeutics shares are held by company insiders. Comparatively, 26.4% of Neumora Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Cidara Therapeutics and Neumora Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cidara Therapeutics	-289.05%	-69.64%	-33.73%
Neumora Therapeutics	N/A	-73.63%	-68.97%

Summary

Neumora Therapeutics beats Cidara Therapeutics on 8 of the 14 factors compared between the two stocks.

About Cidara Therapeutics

Cidara Therapeutics, Inc., a biotechnology company, focuses on developing targeted therapies for patients facing cancers and other serious diseases. The company's product includes rezafungin acetate, a novel molecule in the echinocandin class of antifungals for the treatment and prevention of invasive fungal infections, including candidemia and invasive candidiasis, which are fungal infections associated with high mortality rates. It also develops its Cloudbreak platform that enables development of novel drug-Fc conjugates, that includes CD388, a potent antiviral designed to deliver universal prevention and treatment of seasonal and pandemic influenza, which is in Phase 1 and Phase 2a clinical trials. The company was formerly known as K2 Therapeutics, Inc. and changed its name to Cidara Therapeutics, Inc. in July 2014. The company was incorporated in 2012 and is based in San Diego, California.

About Neumora Therapeutics

Neumora Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in developing therapeutic treatments for brain diseases, neuropsychiatric disorders, and neurodegenerative diseases. The company develops navacaprant (NMRA-140), a novel once-daily oral kappa opioid receptor antagonist, which is in phase 3 clinical trials for the treatment of major depressive disorder. It also develops NMRA-511 that is in phase 1 clinical trials in patients with agitation associated with dementia due to Alzheimer’s disease; and NMRA-266, which is in the phase 1 clinical trial for the treatment of schizophrenia and other neuropsychiatric disorders. In addition, its preclinical phase product includes NMRA-NMDA for the treatment of schizophrenia; NMRA-CK1d, a CK1d inhibitor program for the treatment of amyotrophic lateral sclerosis; NMRA-NLRP3 for the treatment of certain neurodegenerative conditions; and NMRA-GCase for the treatment of Parkinson’s disease. The company was formerly known as RBNC Therapeutics, Inc. and changed its name to Neumora Therapeutics, Inc. in October 2021. Neumora Therapeutics, Inc. was incorporated in 2019 and is headquartered in Watertown, Massachusetts.