Head-To-Head Comparison: CG Oncology (NASDAQ:CGON) and Alector (NASDAQ:ALEC)
by Sarita Garza · The Markets DailyCG Oncology (NASDAQ:CGON – Get Free Report) and Alector (NASDAQ:ALEC – Get Free Report) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.
Volatility and Risk
CG Oncology has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Alector has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.
Earnings & Valuation
This table compares CG Oncology and Alector”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CG Oncology | $4.04 million | 1,419.12 | -$160.99 million | ($2.69) | -24.04 |
| Alector | $21.05 million | 11.72 | -$142.93 million | ($1.10) | -2.01 |
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.
Analyst Ratings
This is a summary of recent ratings and target prices for CG Oncology and Alector, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CG Oncology | 1 | 1 | 8 | 0 | 2.70 |
| Alector | 2 | 1 | 3 | 0 | 2.17 |
CG Oncology currently has a consensus price target of $87.50, indicating a potential upside of 35.28%. Alector has a consensus price target of $4.62, indicating a potential upside of 109.28%. Given Alector’s higher possible upside, analysts plainly believe Alector is more favorable than CG Oncology.
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 company insiders. Comparatively, 8.3% of Alector shares are owned 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.
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% |
Summary
Alector beats CG Oncology on 9 of the 14 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.