Contrasting Compugen (NASDAQ:CGEN) and Cabaletta Bio (NASDAQ:CABA)

Compugen (NASDAQ:CGEN) and Cabaletta Bio (NASDAQ:CABA) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Compugen and Cabaletta Bio, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Compugen 0 0 7 0 3.00
Cabaletta Bio 0 0 3 0 3.00

Compugen presently has a consensus price target of $18.57, indicating a potential upside of 32.28%. Cabaletta Bio has a consensus price target of $22.00, indicating a potential upside of 95.04%. Given Cabaletta Bio’s higher possible upside, analysts plainly believe Cabaletta Bio is more favorable than Compugen.

Profitability

This table compares Compugen and Cabaletta Bio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Compugen N/A -46.10% -35.88%
Cabaletta Bio N/A N/A N/A

Earnings & Valuation

This table compares Compugen and Cabaletta Bio’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Compugen $17.80 million 53.97 -$27.34 million ($0.43) -32.65
Cabaletta Bio N/A N/A -$16.94 million ($4.07) -2.77

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

Insider and Institutional Ownership

47.4% of Compugen shares are held by institutional investors. Comparatively, 66.4% of Cabaletta Bio shares are held by institutional investors. 9.5% of Compugen shares are held by company insiders. Comparatively, 6.5% of Cabaletta Bio shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Cabaletta Bio beats Compugen on 6 of the 10 factors compared between the two stocks.

About Compugen

Compugen Ltd., a therapeutic discovery company, engages in the research, development, and commercialization of therapeutic and product candidates in Israel and Europe. The company's therapeutic pipeline consists of immuno-oncology programs against novel drug targets in the areas of unmet medical needs in various cancer types and patient populations. Its product pipeline consists of COM701, a monoclonal antibody designed to block the interaction of PVRIG with its cognate ligand, PVRL2; CGEN-15001T, an immuno-oncology therapeutic program for ILDR2; and COM902, a therapeutic antibody candidate for its TIGIT program. The company's pipeline also comprises therapeutic proteins include CGEN-15001, a fusion protein drug candidate for autoimmune diseases, including extracellular domain of ILDR2 and an IgG Fc domain. Compugen Ltd. has a clinical trial collaboration with Bristol-Myers Squibb Company to evaluate the safety of COM701 in combination with Bristol-Myers Squibb's programmed death-1 immune checkpoint inhibitor Opdivo in patients with advanced solid tumors. The company was incorporated in 1993 and is headquartered in Holon, Israel.

About Cabaletta Bio

Cabaletta Bio, Inc. operates as a clinical-stage biotechnology company that focuses on the discovery and development of engineered T cell therapies for B cell-mediated autoimmune diseases. The company's proprietary technology utilizes chimeric autoantibody receptor (CAAR) T cells that are designed to selectively bind and eliminate B cells that produce disease-causing autoantibodies or pathogenic B cells. Its lead product candidate is DSG3-CAART, which is in Phase I clinical trial for the treatment of mucosal pemphigus vulgaris, an autoimmune blistering skin disease. The company's products under discovery-stage or preclinical development include DSG3/1-CAART for targeting pathogenic B cells in patients with mucocutaneous pemphigus vulgaris; MuSK-CAART for the treatment of patients with myasthenia gravis; and FVIII-CAART for use as an adjunctive therapy targeting a subset of patients with Hemophilia A. Cabaletta Bio, Inc. has a collaboration with the University of Pennsylvania; and research agreement with The Regents of the University of California. The company was formerly known as Tycho Therapeutics, Inc. and changed its name to Cabaletta Bio, Inc. in August 2018. Cabaletta Bio, Inc. was founded in 2017 and is headquartered in Philadelphia, Pennsylvania.

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