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

Cognition Therapeutics (NASDAQ:CGTX) and Opthea (NASDAQ:OPT) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

43.4% of Cognition Therapeutics shares are held by institutional investors. Comparatively, 56.0% of Opthea shares are held by institutional investors. 23.8% of Cognition Therapeutics shares are held by company insiders. Comparatively, 3.2% of Opthea shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Cognition Therapeutics and Opthea’s 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)	-2.27
Opthea	$110,000.00	1,805.09	-$142.52 million	N/A	N/A

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

Risk & Volatility

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Cognition Therapeutics and Opthea, as provided by MarketBeat.com.

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

Cognition Therapeutics presently has a consensus target price of $6.67, suggesting a potential upside of 241.88%. Opthea has a consensus target price of $14.00, suggesting a potential upside of 311.76%. Given Opthea’s higher probable upside, analysts clearly believe Opthea is more favorable than Cognition Therapeutics.

Profitability

This table compares Cognition Therapeutics and Opthea’s 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%
Opthea	N/A	N/A	N/A

Summary

Opthea beats Cognition Therapeutics on 5 of the 9 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 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 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.