Reviewing Cognition Therapeutics (NASDAQ:CGTX) and Opthea (NASDAQ:OPT)

Opthea (NASDAQ:OPT) and Cognition Therapeutics (NASDAQ:CGTX) 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, valuation, profitability, earnings, risk and analyst recommendations.

Valuation & Earnings

This table compares Opthea and Cognition Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Opthea	$110,000.00	1,805.09	-$142.52 million	N/A	N/A
Cognition Therapeutics	N/A	N/A	-$25.79 million	($0.86)	-2.27

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

Institutional & Insider Ownership

56.0% of Opthea shares are owned by institutional investors. Comparatively, 43.4% of Cognition Therapeutics shares are owned by institutional investors. 3.2% of Opthea shares are owned by company insiders. Comparatively, 23.8% of Cognition Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Opthea	N/A	N/A	N/A
Cognition Therapeutics	N/A	-83.48%	-63.07%

Analyst Ratings

This is a summary of recent recommendations for Opthea and Cognition Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Opthea	0	0	2	0	3.00
Cognition Therapeutics	0	0	3	0	3.00

Opthea presently has a consensus price target of $14.00, indicating a potential upside of 311.76%. Cognition Therapeutics has a consensus price target of $6.67, indicating a potential upside of 241.88%. Given Opthea’s higher possible upside, equities research analysts plainly believe Opthea is more favorable than Cognition Therapeutics.

Volatility and Risk

Opthea has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Cognition Therapeutics has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500.

Summary

Opthea beats Cognition Therapeutics on 5 of the 9 factors compared between the two stocks.

About Opthea

Opthea Limited, a clinical stage biopharmaceutical company, engages in the development and commercialization of therapies primarily for eye disease in Australia. The company's development activities are based on the intellectual property portfolio covering Vascular Endothelial Growth Factors (VEGF) VEGF-C, VEGF-D, and VEGF Receptor-3 for the treatment of diseases associated with blood and lymphatic vessel growth, as well as vascular leakage. Its lead product candidate is Sozinibercept (OPT 302), a soluble form of vascular endothelial growth factor receptor-3 VEGFR-3, currently under Phase 3 clinical development as a novel therapy for wet age-related macular degeneration and diabetic macular edema. The company was formerly known as Circadian Technologies Limited and changed its name to Opthea Limited in December 2015. Opthea Limited was incorporated in 1984 and is based in South Yarra, Australia.

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 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.