Anavex Life Sciences (NASDAQ:AVXL) vs. Cortexyme (NASDAQ:CRTX) Financial Comparison

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anavex Life Sciences	N/A	N/A	-$43.00 million	($0.55)	-15.02
Cortexyme	N/A	N/A	-$89.94 million	($2.97)	-0.47

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.

Institutional & Insider Ownership

31.6% of Anavex Life Sciences shares are held by institutional investors. Comparatively, 63.2% of Cortexyme shares are held by institutional investors. 11.0% of Anavex Life Sciences shares are held by company insiders. Comparatively, 27.9% of Cortexyme shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

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

Profitability

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

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

Analyst Ratings

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

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

Anavex Life Sciences currently has a consensus price target of $44.00, suggesting a potential upside of 432.69%. Given Anavex Life Sciences’ stronger consensus rating and higher probable upside, analysts plainly believe Anavex Life Sciences is more favorable than Cortexyme.

Summary

Anavex Life Sciences beats Cortexyme on 8 of the 11 factors compared between the two stocks.

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.

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.