Financial Review: Cortexyme (NASDAQ:CRTX) & ImmunityBio (NASDAQ:IBRX)

Cortexyme (NASDAQ:CRTX) and ImmunityBio (NASDAQ:IBRX) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Risk and Volatility

Cortexyme has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, ImmunityBio has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Cortexyme and ImmunityBio, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cortexyme	0	0	0	0	N/A
ImmunityBio	0	1	0	0	2.00

ImmunityBio has a consensus target price of $6.00, suggesting a potential downside of 9.37%. Given ImmunityBio’s higher possible upside, analysts plainly believe ImmunityBio is more favorable than Cortexyme.

Profitability

This table compares Cortexyme and ImmunityBio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cortexyme	N/A	-70.96%	-63.53%
ImmunityBio	-198,994.05%	N/A	-114.89%

Valuation & Earnings

This table compares Cortexyme and ImmunityBio’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cortexyme	N/A	N/A	-$89.94 million	($2.97)	-0.26
ImmunityBio	$620,000.00	7,384.18	-$583.20 million	($1.09)	-6.07

Cortexyme has higher earnings, but lower revenue than ImmunityBio. ImmunityBio is trading at a lower price-to-earnings ratio than Cortexyme, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

63.2% of Cortexyme shares are owned by institutional investors. Comparatively, 8.6% of ImmunityBio shares are owned by institutional investors. 27.9% of Cortexyme shares are owned by insiders. Comparatively, 83.4% of ImmunityBio shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Cortexyme beats ImmunityBio on 6 of the 11 factors compared between the two stocks.

About Cortexyme

Cortexyme, Inc., a clinical stage biopharmaceutical company, focuses on developing therapeutics for Alzheimer's and other degenerative diseases. Its lead drug candidate is atuzaginstat (COR388), an orally administered brain-penetrating small molecule gingipain inhibitor, which is in Phase II/III clinical trial for use in patients with mild to moderate Alzheimer's disease, as well as for the treatment of oral squamous cell carcinoma, periodontitis, and coronavirus infection. The company was incorporated in 2012 and is headquartered in South San Francisco, California.

About ImmunityBio

ImmunityBio, Inc., a clinical-stage biotechnology company, engages in developing therapies and vaccines that bolster the natural immune system to defeat cancers and infectious diseases. Its platforms for the development of biologic product candidates include antibody-cytokine fusion proteins; DNA, RNA, and recombinant protein vaccines; and cell therapies. The company's platforms have generated therapeutic agents that are currently being or planned to be studied in clinical trials across various indications in liquid and solid tumors, including bladder, lung and colorectal cancers, and glioblastoma multiforme. Its lead biologic product candidate is Anktiva, an FDA-approved immunotherapy in combination with bacillus calmette-guérin (BCG) for the treatment of adult patients with BCG unresponsive non-muscle invasive bladder cancer with carcinoma in situ, with or without papillary tumors. The company has collaboration agreements with National Cancer Institute. It also has license agreements with 3M Innovative Properties Company; Access to Advanced Health Institute; LadRx Corporation; Sanford Health; Shenzhen Beike Biotechnology Co. Ltd.; Viracta Therapeutics, Inc.; and GlobeImmune, Inc. The company is based in San Diego, California.