Critical Analysis: NanoString Technologies (NASDAQ:NSTG) vs. Cortexyme (NASDAQ:CRTX)

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

Earnings & Valuation

This table compares NanoString Technologies and Cortexyme’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NanoString Technologies	$127.26 million	0.52	-$159.54 million	($3.54)	-0.39
Cortexyme	N/A	N/A	-$89.94 million	($2.97)	-0.33

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

Insider and Institutional Ownership

63.2% of Cortexyme shares are held by institutional investors. 3.1% of NanoString Technologies shares are held by insiders. Comparatively, 27.9% of Cortexyme shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

NanoString Technologies has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500. Comparatively, Cortexyme has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for NanoString Technologies and Cortexyme, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NanoString Technologies	0	1	5	0	2.83
Cortexyme	0	0	0	0	N/A

NanoString Technologies presently has a consensus price target of $13.08, indicating a potential upside of 848.07%. Given NanoString Technologies’ higher possible upside, analysts plainly believe NanoString Technologies is more favorable than Cortexyme.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NanoString Technologies	-115.14%	-548.25%	-49.23%
Cortexyme	N/A	-70.96%	-63.53%

Summary

Cortexyme beats NanoString Technologies on 7 of the 12 factors compared between the two stocks.

About NanoString Technologies

NanoString Technologies, Inc. develops, manufactures, and sells technology for scientific and clinical information in the fields of genomics and proteomics in the Americas, Europe, the Middle East, and the Asia Pacific. The company offers nCounter Analysis System, an automated, multi-application, digital detection, and counting system. It provides nCounter Pro and FLEX systems that include Prep Station, an automated liquid handling component that processes and prepares samples for data collection; and nCounter Digital Analyzer, which collects data from samples by taking images of the immobilized fluorescent reporters in the sample cartridge and processing the data into output files. The company also offers nCounter SPRINT Profiler, an instrument that provides liquid handling steps and the digital analysis through use of a microfluidic cartridge; and nSolver Analysis Software, a data analysis program that enables researchers to check, normalize, and analyze their data. In addition, it provides custom CodeSets; panels with oncology, immunology and infectious disease, and neuroscience applications. Further, the company offers Master Kits, cartridges, ancillary reagents, tips and reagent plates to setup and process samples in instruments; and Prosigna in vitro diagnostic kits. The company is also developing GeoMx DSP system to enable the field of spatial biology. It has collaboration with Lam Research Corporation for the development of NGS sequencing platform and related assays; and Parker Institute for Cancer Immunotherapy to develop CAR-T regimens that enhances patient outcomes for various types of cancer, as well as collaboration with Stanford Medicine, Acrobat Genomics, and Illumina Accelerator to discover new drug targets for gene editing-based therapeutics. NanoString Technologies, Inc. was incorporated in 2003 and is headquartered in Seattle, Washington.

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.