Analyzing Cardiol Therapeutics (NASDAQ:CRDL) and Cortexyme (NASDAQ:CRTX)

Cardiol Therapeutics (NASDAQ:CRDL) and Cortexyme (NASDAQ:CRTX) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Insider and Institutional Ownership

12.5% of Cardiol Therapeutics shares are owned by institutional investors. Comparatively, 63.2% of Cortexyme shares are owned by institutional investors. 5.3% of Cardiol Therapeutics shares are owned by insiders. Comparatively, 27.9% of Cortexyme shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Cardiol Therapeutics and Cortexyme, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cardiol Therapeutics	0	0	5	2	3.29
Cortexyme	0	0	0	0	0.00

Cardiol Therapeutics presently has a consensus price target of $8.40, indicating a potential upside of 621.03%. Given Cardiol Therapeutics’ stronger consensus rating and higher possible upside, equities analysts clearly believe Cardiol Therapeutics is more favorable than Cortexyme.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cardiol Therapeutics	N/A	-194.40%	-129.07%
Cortexyme	N/A	-70.96%	-63.53%

Volatility and Risk

Cardiol Therapeutics has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Cortexyme has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cardiol Therapeutics	N/A	N/A	-$20.84 million	($0.39)	-2.99
Cortexyme	N/A	N/A	-$89.94 million	($2.97)	-0.51

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

About Cardiol Therapeutics

Cardiol Therapeutics Inc., a clinical-stage life sciences company, focuses on the research and development of anti-fibrotic and anti-inflammatory therapies for the treatment of heart diseases. Its lead product CardiolRx, which is in Phase II multi-national, randomized, double-blind, and placebo-controlled study to evaluate the efficacy and safety of CardiolRx in acute myocarditis, as well as for the treatment of recurrent pericarditis. The company is also developing CRD-38 injection for subcutaneous administration that is in preclinical development for the treatment of heart failure. It has a license agreement with Meros. The company was incorporated in 2017 and is headquartered in Oakville, Canada.

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.