Analyzing Inhibikase Therapeutics (NYSE:IKT) & Cortexyme (NASDAQ:CRTX)

Cortexyme (NASDAQ:CRTX) and Inhibikase Therapeutics (NYSE:IKT) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Risk and Volatility

Cortexyme has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Inhibikase Therapeutics has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Valuation & Earnings

This table compares Cortexyme and Inhibikase Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cortexyme	N/A	N/A	-$89.94 million	($2.97)	-0.58
Inhibikase Therapeutics	N/A	N/A	-$19.03 million	($2.67)	-0.64

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

Analyst Ratings

This is a summary of current ratings and price targets for Cortexyme and Inhibikase Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cortexyme	0	0	0	0	0.00
Inhibikase Therapeutics	0	1	1	0	2.50

Inhibikase Therapeutics has a consensus target price of $6.50, suggesting a potential upside of 280.12%. Given Inhibikase Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Inhibikase Therapeutics is more favorable than Cortexyme.

Institutional and Insider Ownership

63.2% of Cortexyme shares are held by institutional investors. Comparatively, 3.8% of Inhibikase Therapeutics shares are held by institutional investors. 27.9% of Cortexyme shares are held by company insiders. Comparatively, 7.3% of Inhibikase Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Cortexyme and Inhibikase Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cortexyme	N/A	-70.96%	-63.53%
Inhibikase Therapeutics	N/A	-350.63%	-201.82%

Summary

Cortexyme beats Inhibikase Therapeutics on 6 of the 11 factors compared between the two stocks.

About Cortexyme

Cortexyme, Inc., a clinical stage biopharmaceutical company, focuses on developing therapeutics for Alzheimer's and other degenerative diseases. Its lead drug candidate is atuzaginstat (COR388), an orally administered brain-penetrating small molecule gingipain inhibitor, which is in Phase II/III clinical trial for use in patients with mild to moderate Alzheimer's disease, as well as for the treatment of oral squamous cell carcinoma, periodontitis, and coronavirus infection. The company was incorporated in 2012 and is headquartered in South San Francisco, California.

About Inhibikase Therapeutics

Inhibikase Therapeutics, Inc., a clinical-stage pharmaceutical company, develops therapeutics for Parkinson’s disease and related disorders. Its lead product candidate is IkT-148009, a non-receptor Abelson tyrosine kinase inhibitor, which is in Phase 2a clinical trials to the treatment of Parkinson’s disease and gastrointestinal tract. The company is also developing IkT-001Pro, a prodrug of the anticancer agent imatinib mesylate to treat stable phase chronic myelogenous leukemia. Inhibikase Therapeutics, Inc. has research and development collaborations with Johns Hopkins University, Arizona State University, and Michigan State University; and a collaborative research and development agreement with Sphaera Pharma Pte. Ltd. The company was founded in 2008 and is headquartered in Atlanta, Georgia.