Analyzing Monte Rosa Therapeutics (NASDAQ:GLUE) and Cogent Biosciences (NASDAQ:COGT)

Monte Rosa Therapeutics (NASDAQ:GLUE) and Cogent Biosciences (NASDAQ:COGT) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Earnings & Valuation

This table compares Monte Rosa Therapeutics and Cogent Biosciences”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monte Rosa Therapeutics	$75.62 million	14.99	-$72.70 million	$0.32	54.41
Cogent Biosciences	N/A	N/A	-$255.86 million	($1.64)	-23.64

Monte Rosa Therapeutics has higher revenue and earnings than Cogent Biosciences. Cogent Biosciences is trading at a lower price-to-earnings ratio than Monte Rosa Therapeutics, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Monte Rosa Therapeutics and Cogent Biosciences, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monte Rosa Therapeutics	1	1	2	0	2.25
Cogent Biosciences	1	2	9	2	2.86

Monte Rosa Therapeutics currently has a consensus price target of $16.33, indicating a potential downside of 6.18%. Cogent Biosciences has a consensus price target of $32.33, indicating a potential downside of 16.60%. Given Monte Rosa Therapeutics’ higher probable upside, equities research analysts plainly believe Monte Rosa Therapeutics is more favorable than Cogent Biosciences.

Profitability

This table compares Monte Rosa Therapeutics and Cogent Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monte Rosa Therapeutics	11.54%	8.28%	5.07%
Cogent Biosciences	N/A	-236.35%	-89.72%

Insider and Institutional Ownership

80.0% of Monte Rosa Therapeutics shares are owned by institutional investors. 6.9% of Monte Rosa Therapeutics shares are owned by insiders. Comparatively, 7.3% of Cogent Biosciences shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Monte Rosa Therapeutics has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Cogent Biosciences has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Summary

Monte Rosa Therapeutics beats Cogent Biosciences on 10 of the 14 factors compared between the two stocks.

About Monte Rosa Therapeutics

Monte Rosa Therapeutics, Inc., a clinical-stage biotechnology company, engages in the development of novel small molecule precision medicines that employ the body's natural mechanisms to selectively degrade therapeutically relevant proteins. The company develops MRT-2359, an orally bioavailable molecular glue degrader targeting the translation termination factor protein GSPT1 for the treatment of MYC-driven tumors; MRT-6160 for the treatment of systemic and central nervous system autoimmune diseases; and MRT-8102 for the treatment of IL-1?/NLRP3 driven inflammatory diseases. It also develops CDK2 to treat ovarian, uterine, and breast cancers. The company was incorporated in 2019 and is headquartered in Boston, Massachusetts.

About Cogent Biosciences

Cogent Biosciences, Inc., a biotechnology company, focuses on developing precision therapies for genetically defined diseases. Its lead product candidate includes bezuclastinib (CGT9486), a selective tyrosine kinase inhibitor designed to target mutations within the KIT receptor tyrosine kinase, including KIT D816V KIT D816V mutation that drives systemic mastocytosis, as well as other mutations in KIT exon 17, which are found in patients with advanced gastrointestinal stromal tumors. The company has a licensing agreement with Plexxikon Inc. for the research, development, and commercialization of bezuclastinib. The company was formerly known as Unum Therapeutics Inc. and changed its name to Cogent Biosciences, Inc. in October 2020. Cogent Biosciences, Inc. was incorporated in 2014 and is headquartered in Waltham, Massachusetts.