Cognition Therapeutics (NASDAQ:CGTX) and Black Diamond Therapeutics (NASDAQ:BDTX) Head to Head Review

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

Analyst Recommendations

This is a summary of current ratings and price targets for Cognition Therapeutics and Black Diamond Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cognition Therapeutics	0	0	3	0	3.00
Black Diamond Therapeutics	0	0	4	0	3.00

Cognition Therapeutics currently has a consensus price target of $6.67, indicating a potential upside of 252.73%. Black Diamond Therapeutics has a consensus price target of $12.25, indicating a potential upside of 127.70%. Given Cognition Therapeutics’ higher probable upside, research analysts clearly believe Cognition Therapeutics is more favorable than Black Diamond Therapeutics.

Insider & Institutional Ownership

43.4% of Cognition Therapeutics shares are owned by institutional investors. Comparatively, 95.5% of Black Diamond Therapeutics shares are owned by institutional investors. 23.8% of Cognition Therapeutics shares are owned by insiders. Comparatively, 9.1% of Black Diamond Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Cognition Therapeutics and Black Diamond Therapeutics’ gross 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)	-2.20
Black Diamond Therapeutics	N/A	N/A	-$82.44 million	($1.88)	-2.86

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

Volatility and Risk

Cognition Therapeutics has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Black Diamond Therapeutics has a beta of 2.64, suggesting that its share price is 164% more volatile than the S&P 500.

Profitability

This table compares Cognition Therapeutics and Black Diamond Therapeutics’ 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%
Black Diamond Therapeutics	N/A	-76.43%	-56.24%

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 Black Diamond Therapeutics

Black Diamond Therapeutics, Inc., a clinical-stage precision oncology medicine company, focuses on the discovery and development of therapies for patients with genetically defined cancers. The company's lead product candidate, BDTX-1535, a brain-penetrant, mutant selective, irreversible EGFR MasterKey inhibitor, designed to inhibit a family of oncogenic mutations, currently under Phase 1 clinical trial. It also develops BDTX-4933, a brain penetrant RAF MasterKey inhibitor, designed to be a brain penetrant and highly selective and potent inhibitor of oncogenic BRAF Class I, II, III and active RAF dimers, expected to initiate Phase 1 clinical trial. The company was formerly known as ASET Therapeutics, Inc. and changed its name to Black Diamond Therapeutics, Inc. in January 2018. Black Diamond Therapeutics, Inc. was incorporated in 2014 and is headquartered in Cambridge, Massachusetts.