Contrasting CARGO Therapeutics (NASDAQ:CRGX) & Cullinan Therapeutics (NASDAQ:CGEM)

Cullinan Therapeutics (NASDAQ:CGEM) and CARGO Therapeutics (NASDAQ:CRGX) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Earnings and Valuation

This table compares Cullinan Therapeutics and CARGO Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cullinan Therapeutics	$18.94 million	55.23	-$153.16 million	($3.13)	-5.80
CARGO Therapeutics	N/A	N/A	-$98.15 million	N/A	N/A

CARGO Therapeutics has lower revenue, but higher earnings than Cullinan Therapeutics.

Analyst Recommendations

This is a summary of current ratings for Cullinan Therapeutics and CARGO Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cullinan Therapeutics	0	0	6	0	3.00
CARGO Therapeutics	0	0	7	0	3.00

Cullinan Therapeutics currently has a consensus target price of $32.00, suggesting a potential upside of 76.31%. CARGO Therapeutics has a consensus target price of $30.33, suggesting a potential upside of 27.18%. Given Cullinan Therapeutics’ higher possible upside, equities research analysts clearly believe Cullinan Therapeutics is more favorable than CARGO Therapeutics.

Profitability

This table compares Cullinan Therapeutics and CARGO Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cullinan Therapeutics	N/A	-28.37%	-26.96%
CARGO Therapeutics	N/A	-50.68%	-38.69%

Institutional and Insider Ownership

86.3% of Cullinan Therapeutics shares are held by institutional investors. Comparatively, 93.2% of CARGO Therapeutics shares are held by institutional investors. 6.1% of Cullinan Therapeutics shares are held by company insiders. Comparatively, 1.4% of CARGO Therapeutics shares are held by company 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

Cullinan Therapeutics beats CARGO Therapeutics on 5 of the 8 factors compared between the two stocks.

About Cullinan Therapeutics

Cullinan Therapeutics, Inc., a biopharmaceutical company, focuses on developing oncology therapies for cancer patients in the United States. The company's lead program comprises CLN-619, a monoclonal antibody that is in Phase I clinical trial for the treatment of solid tumors. Its development portfolio also includes CLN-049, a humanized bispecific antibody that is in Phase I clinical trial for the treatment of acute myeloid leukemia or myelodysplastic syndrome; CLN-418, a human bispecific immune activator that is in Phase 1 clinical trial for the treatment of multiple solid tumors; and Zipalertinib, a bioavailable small-molecule for treating patients with non-small cell lung cancer. In addition, the company's development products comprise CLN-617, a fusion protein for the treatment of solid tumors; and CLN-978, a T cell engaging antibody for the treatment relapsed/refractory B-cell non-Hodgkin lymphoma. It has license and collaboration agreement with Adimab, LLC to discover and/or optimize antibodies; Harbour BioMed US Inc. for the development, manufacturing, and commercialization of CLN-418; and co-development agreement with Taiho Pharmaceutical Co., Ltd to develop Zipalertinib. Cullinan Therapeutics, Inc. was formerly known as Cullinan Oncology, Inc. and changed its name to Cullinan Therapeutics, Inc. in April 2024. Cullinan Therapeutics, Inc. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.

About CARGO Therapeutics

CARGO Therapeutics, Inc., a clinical-stage biotechnology company, develops chimeric antigen receptor (CAR) T-cell therapies for cancer patients. The company's lead program is CRG-022, an autologous CD22 CAR T-cell product candidate designed to address resistance mechanisms by targeting CD22, an alternate tumor antigen that is expressed in B-cell malignancies. It also develops CRG-023, a tri-specific CAR T product candidate that targets tumor cells with three B-cell antigen targets. The company was formerly known as Syncopation Life Sciences, Inc. and changed its name to CARGO Therapeutics, Inc. in September 2022. CARGO Therapeutics, Inc. was incorporated in 2019 and is headquartered in San Mateo, California.