Head to Head Survey: Cognition Therapeutics (NASDAQ:CGTX) and Editas Medicine (NASDAQ:EDIT)

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

Volatility and Risk

Cognition Therapeutics has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Editas Medicine has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500.

Profitability

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

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

Valuation and Earnings

This table compares Cognition Therapeutics and Editas Medicine”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	($0.97)	-0.78
Editas Medicine	$61.76 million	1.79	-$153.22 million	($2.56)	-0.52

Cognition Therapeutics has higher earnings, but lower revenue 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.

Institutional & Insider Ownership

43.3% of Cognition Therapeutics shares are held by institutional investors. Comparatively, 71.9% of Editas Medicine shares are held by institutional investors. 20.8% of Cognition Therapeutics shares are held by company insiders. Comparatively, 1.9% of Editas Medicine 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Cognition Therapeutics and Editas Medicine, as reported by MarketBeat.com.

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

Cognition Therapeutics currently has a consensus price target of $8.30, indicating a potential upside of 999.34%. Editas Medicine has a consensus price target of $7.00, indicating a potential upside of 422.39%. Given Cognition Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Cognition Therapeutics is more favorable than Editas Medicine.

Summary

Cognition Therapeutics beats Editas Medicine on 7 of the 13 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 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.