Gilead Sciences (NASDAQ:GILD – Get Free Report) and Cognition Therapeutics (NASDAQ:CGTX – Get Free Report) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.
Volatility & Risk
Gilead Sciences has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, Cognition Therapeutics has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.
Institutional & Insider Ownership
82.3% of Gilead Sciences shares are held by institutional investors. Comparatively, 23.4% of Cognition Therapeutics shares are held by institutional investors. 0.2% of Gilead Sciences shares are held by company insiders. Comparatively, 23.8% of Cognition Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gilead Sciences | 1 | 8 | 10 | 0 | 2.47 |
| Cognition Therapeutics | 0 | 0 | 1 | 0 | 3.00 |
Gilead Sciences currently has a consensus price target of $90.05, suggesting a potential upside of 14.80%. Cognition Therapeutics has a consensus price target of $7.50, suggesting a potential upside of 490.55%. Given Cognition Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Cognition Therapeutics is more favorable than Gilead Sciences.
Profitability
This table compares Gilead Sciences and Cognition Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gilead Sciences | 20.03% | 37.53% | 12.66% |
| Cognition Therapeutics | N/A | -60.65% | -46.91% |
Valuation and Earnings
This table compares Gilead Sciences and Cognition Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gilead Sciences | $27.28 billion | 3.58 | $4.59 billion | $4.35 | 18.03 |
| Cognition Therapeutics | N/A | N/A | -$21.40 million | ($0.86) | -1.48 |
Gilead Sciences has higher revenue and earnings than Cognition Therapeutics. Cognition Therapeutics is trading at a lower price-to-earnings ratio than Gilead Sciences, indicating that it is currently the more affordable of the two stocks.
Summary
Gilead Sciences beats Cognition Therapeutics on 9 of the 13 factors compared between the two stocks.
About Gilead Sciences
Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, and Atripla products for the treatment of HIV/AIDS; Veklury, an injection for intravenous use, for the treatment of coronavirus disease 2019; and Epclusa, Harvoni, Vosevi, Vemlidy, and Viread for the treatment of viral hepatitis. It also offers Yescarta, Tecartus, Trodelvy, and Zydelig products for the treatment of oncology; Letairis, an oral formulation for the treatment of pulmonary arterial hypertension; and AmBisome, a liposomal formulation for the treatment of serious invasive fungal infections. Gilead Sciences, Inc. has collaboration agreements with Arcus Biosciences, Inc.; Merck & Co, Inc.; Pionyr Immunotherapeutics Inc.; Tizona Therapeutics, Inc.; Tango Therapeutics, Inc.; Jounce Therapeutics, Inc.; Galapagos NV; Janssen Sciences Ireland Unlimited Company; Japan Tobacco, Inc.; Dragonfly Therapeutics, Inc.; Merck & Co, Inc. and Tentarix Biotherapeutics Inc. The company was incorporated in 1987 and is headquartered in Foster City, California.
About Cognition Therapeutics
Cognition Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of small molecule therapeutics targeting age-related degenerative diseases and disorders of the central nervous system and retina. Its lead product candidate is CT1812, an orally delivered molecule modulator designed to penetrate the blood-brain barrier and bind selectively to the S2R complex for the treatment of Alzheimer's disease. The company is also developing COG0201 SHINE, a randomized double-blind and placebo-controlled for mild-to-moderate AD and is in phase II clinical trial. Its product pipeline also includes CT2168 for Synucleinopathies; and CT2074 for dry age-related macular degeneration. The company was incorporated in 2007 and is headquartered in Purchase, New York.
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