CG Oncology (NASDAQ:CGON) versus Alector (NASDAQ:ALEC) Head to Head Analysis

CG Oncology (NASDAQ:CGON) and Alector (NASDAQ:ALEC) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Insider & Institutional Ownership

26.6% of CG Oncology shares are owned by institutional investors. Comparatively, 85.8% of Alector shares are owned by institutional investors. 4.8% of CG Oncology shares are owned by insiders. Comparatively, 8.3% of Alector shares are owned 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for CG Oncology and Alector, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CG Oncology	1	1	8	0	2.70
Alector	2	1	2	1	2.33

CG Oncology currently has a consensus price target of $87.50, suggesting a potential upside of 15.15%. Alector has a consensus price target of $4.62, suggesting a potential upside of 101.97%. Given Alector’s higher possible upside, analysts clearly believe Alector is more favorable than CG Oncology.

Volatility & Risk

CG Oncology has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Alector has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Profitability

This table compares CG Oncology and Alector’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CG Oncology	-3,602.68%	-25.20%	-23.98%
Alector	-850.13%	-531.03%	-44.00%

Earnings and Valuation

This table compares CG Oncology and Alector”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CG Oncology	$4.04 million	1,667.27	-$160.99 million	($2.69)	-28.25
Alector	$21.05 million	12.15	-$142.93 million	($1.10)	-2.08

Alector has higher revenue and earnings than CG Oncology. CG Oncology is trading at a lower price-to-earnings ratio than Alector, indicating that it is currently the more affordable of the two stocks.

Summary

Alector beats CG Oncology on 10 of the 15 factors compared between the two stocks.

About CG Oncology

CG Oncology, Inc., an oncolytic immunotherapy company, focuses on developing and commercializing backbone bladder-sparing therapeutics for patients with bladder cancer. The company develops BOND-003 for the treatment of high-risk bacillus calmette guerin (BCG)-unresponsive non-muscle invasive bladder cancer (NMIBC) patients; CORE-001 to treat cretostimogene in combination with pembrolizumab in high-risk BCG-unresponsive NMIBC patients; and CORE-002 for the treatment of cretostimogene in combination with the checkpoint inhibitor nivolumab in muscle invasive bladder cancer patients. It also develops PIVOT-006, a cretostimogene monotherapy for intermediate-risk NMIBC following transurethral resection of the bladder tumor; and CORE-008 for treating patients with high-risk NMIBC, including BCG-exposed and BCG-naïve NMIBC patients. CG Oncology, Inc. was formerly known as Cold Genesys, Inc. and changed its name to CG Oncology, Inc. in June 2020. The company was founded in 2010 and is based in Irvine, California.

About Alector

Alector, Inc., a clinical stage biopharmaceutical company, develops therapies for the treatment of neurodegeneration diseases. Its products include AL001, an immune activity in the brain with genetic links to multiple neurodegenerative disorders, which is in Phase III clinical trial for the treatment of frontotemporal dementia, Alzheimer's, Parkinson's, and amyotrophic lateral sclerosis diseases; and AL101 that is in Phase I clinical trial for the treatment of neurodegenerative diseases, including Alzheimer's and Parkinson's diseases. The company also offers AL002, a product candidate that is in Phase II clinical trial for the treatment of Alzheimer's disease. Alector, Inc. has a collaboration agreement with Adimab, LLC for the research and development of antibodies; and a strategic collaboration agreement with GlaxoSmithKline plc for the development and commercialization of monoclonal antibodies, such as AL001 and AL101 to treat neurodegenerative diseases. The company was founded in 2013 and is headquartered in South San Francisco, California.