Analyzing Cortexyme (NASDAQ:CRTX) and Anavex Life Sciences (NASDAQ:AVXL)

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

Risk and Volatility

Cortexyme has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Anavex Life Sciences has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Institutional & Insider Ownership

63.2% of Cortexyme shares are held by institutional investors. Comparatively, 31.5% of Anavex Life Sciences shares are held by institutional investors. 27.9% of Cortexyme shares are held by company insiders. Comparatively, 11.0% of Anavex Life Sciences shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Cortexyme and Anavex Life Sciences, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cortexyme	0	0	0	0	0.00
Anavex Life Sciences	0	0	2	1	3.33

Anavex Life Sciences has a consensus price target of $44.00, indicating a potential upside of 432.04%. Given Anavex Life Sciences’ stronger consensus rating and higher possible upside, analysts plainly believe Anavex Life Sciences is more favorable than Cortexyme.

Earnings and Valuation

This table compares Cortexyme and Anavex Life Sciences”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cortexyme	N/A	N/A	-$89.94 million	($2.97)	-0.49
Anavex Life Sciences	N/A	N/A	-$43.00 million	($0.55)	-15.04

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

Profitability

This table compares Cortexyme and Anavex Life Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cortexyme	N/A	-70.96%	-63.53%
Anavex Life Sciences	N/A	-37.50%	-34.08%

Summary

Anavex Life Sciences beats Cortexyme on 8 of the 12 factors compared between the two stocks.

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.

About Anavex Life Sciences

Anavex Life Sciences Corp., a clinical stage biopharmaceutical company, engages in the development of therapeutics for the treatment of central nervous system diseases. Its lead product candidate is ANAVEX 2-73 for the treatment of Alzheimer's disease and Parkinson's disease, as well as other central nervous system diseases, including rare diseases, such as Rett syndrome, a rare severe neurological monogenic disorder; and infantile spasms, Fragile X syndrome, and Angelman syndrome. The company's drug candidate also comprises ANAVEX 3-71, which is in clinical trial for the treatment of schizophrenia, frontotemporal dementia, and Alzheimer's disease. Its preclinical drug candidates include ANAVEX 1-41 for the treatment of depression, stroke, and neurogenerative disease; ANAVEX 1066 for the potential treatment of neuropathic and visceral pain; and ANAVEX 1037 to treat prostate and pancreatic cancer. The company was incorporated in 2004 and is headquartered in New York, New York.