Contrasting Alpha Cognition (OTC:ACOGF) and Prime Medicine (NYSE:PRME)

Alpha Cognition (OTC:ACOGF) and Prime Medicine (NYSE:PRME) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Volatility and Risk

Alpha Cognition has a beta of 2.8, meaning that its stock price is 180% more volatile than the S&P 500. Comparatively, Prime Medicine has a beta of 2.38, meaning that its stock price is 138% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Alpha Cognition and Prime Medicine, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Cognition	0	0	0	0	0.00
Prime Medicine	0	3	4	1	2.75

Prime Medicine has a consensus target price of $8.92, indicating a potential upside of 118.55%. Given Prime Medicine’s stronger consensus rating and higher probable upside, analysts clearly believe Prime Medicine is more favorable than Alpha Cognition.

Earnings & Valuation

This table compares Alpha Cognition and Prime Medicine”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Cognition	N/A	N/A	-$13.77 million	C($0.12)	N/A
Prime Medicine	$4.96 million	110.68	-$198.13 million	($1.56)	-2.62

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

Profitability

This table compares Alpha Cognition and Prime Medicine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpha Cognition	N/A	N/A	-522.43%
Prime Medicine	N/A	-107.87%	-74.97%

Insider & Institutional Ownership

70.4% of Prime Medicine shares are held by institutional investors. 31.5% of Alpha Cognition shares are held by insiders. Comparatively, 22.7% of Prime Medicine shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Prime Medicine beats Alpha Cognition on 8 of the 13 factors compared between the two stocks.

About Alpha Cognition

Alpha Cognition Inc., a clinical stage biopharmaceutical company, develops treatments for Alzheimer’s disease and amyotrophic lateral sclerosis (ALS). It develops ALPHA-1062 for the treatment of mild-to-moderate Alzheimer’s disease and mild traumatic brain injury; ALPHA-0602, a gene therapy for the treatment of ALS; and ALPHA-0702 and ALPHA-0802, a granulin epithelin motifs for the treatment of neurodegenerative diseases. The company was formerly known as Crystal Bridge Enterprises Inc. and changed its name to Alpha Cognition Inc. in March 2021. Alpha Cognition Inc. was founded in 2000 and is headquartered in Vancouver, Canada.

About Prime Medicine

Prime Medicine, Inc., a biotechnology company, delivers genetic therapies to address the spectrum of diseases by deploying gene editing technology. The company offers Prime Editors with a Prime Editor protein, comprising a fusion between a Cas protein and a reverse transcriptase enzyme; and a pegRNA, which targets the Prime Editor to a specific genomic location and provides a template for making the desired edit to the target DNA sequence. It has a research collaboration with Cimeio Therapeutics to develop Prime Edited Shielded-Cell & Immunotherapy Pairs for genetic diseases, acute myeloid leukemia, and myelodysplastic syndrome. The company was incorporated in 2019 and is based in Cambridge, Massachusetts.