Fortress Biotech (NASDAQ:FBIO – Get Free Report) and Cognition Therapeutics (NASDAQ:CGTX – Get Free Report) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.
Insider and Institutional Ownership
96.5% of Fortress Biotech shares are owned by institutional investors. Comparatively, 43.4% of Cognition Therapeutics shares are owned by institutional investors. 27.9% of Fortress Biotech shares are owned by company insiders. Comparatively, 14.4% of Cognition Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations and price targets for Fortress Biotech and Cognition Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fortress Biotech | 1 | 0 | 2 | 1 | 2.75 |
| Cognition Therapeutics | 1 | 0 | 3 | 2 | 3.00 |
Profitability
This table compares Fortress Biotech and Cognition Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fortress Biotech | 6.40% | -69.39% | -13.95% |
| Cognition Therapeutics | N/A | -150.10% | -95.88% |
Valuation & Earnings
This table compares Fortress Biotech and Cognition Therapeutics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fortress Biotech | $57.67 million | 1.88 | -$46.00 million | ($0.18) | -19.39 |
| Cognition Therapeutics | N/A | N/A | -$33.97 million | ($0.48) | -2.23 |
Cognition Therapeutics has lower revenue, but higher earnings than Fortress Biotech. Fortress Biotech is trading at a lower price-to-earnings ratio than Cognition Therapeutics, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Fortress Biotech has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, Cognition Therapeutics has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.
Summary
Fortress Biotech beats Cognition Therapeutics on 9 of the 14 factors compared between the two stocks.
About Fortress Biotech
Fortress Biotech, Inc., a biopharmaceutical company, develops dermatology, pharmaceutical, and biotechnology products in the United States. The company markets dermatology products, such as Qbrexza a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane capsules for severe recalcitrant nodular acne; Amzeeq for severe acne vulgaris; Zilxi, a topical foam; Exelderm cream and solution for topical use; Targadox an oral doxycycline drug for adjunctive therapy for severe acne; Luxamend; sulconazole nitrate cream and solution for tinea cruris and tinea corporis; and doxycycline hyclate tablet. It also develops late stage product candidates, such as intravenous Tramadol for the treatment of post-operative acute pain; CUTX-101, an injection for the treatment of Menkes disease; Cosibelimab for metastatic cancers; Olafertinib for the treatment of patients with EGFR mutation-positive NSCLC; CAEL-101 for the treatment of amyloid light chain amyloidosis; Triplex vaccine for cytomegalovirus; and DFD-29 for the treatment of rosacea. The company’s early stage product candidates include Dotinurad for gout; MB-106 for B-cell non-hodgkin lymphoma; MB-101 for glioblastoma; MB-108 for recurrent GBM; MB-109 for refractory glioblastoma; AJ201, an androgen receptor degradation enhancer; BAER-101, a positive allosteric modulator; MB-117 for newly diagnosed x-linked severe combined immunodeficiency; and MB217 for previously transplanted; and MB-110 for RAG1 severe combined immunodeficiency. Its preclinical product candidates comprise Mayo Clinic In Vivo CAR T Platform Technology; AAV-ATP7A gene therapy; AVTS-001 gene therapy; CK-103 BET inhibitor; CEVA-D and CEVA-102; CK-302, an anti-GITR; CK-303, an anti-CAIX; and oligonucleotide platform. The company was formerly known as Coronado Biosciences, Inc. and changed its name to Fortress Biotech, Inc. in April 2015. Fortress Biotech, Inc. was incorporated in 2006 and is based in Bay Harbor Islands, Florida.
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.
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