Alector (NASDAQ:ALEC – Get Free Report) and CG Oncology (NASDAQ:CGON – Get Free Report) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.
Earnings and Valuation
This table compares Alector and CG Oncology”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alector | $21.05 million | 11.72 | -$142.93 million | ($1.10) | -2.01 |
| CG Oncology | $4.04 million | 1,419.12 | -$160.99 million | ($2.69) | -24.04 |
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 Recommendations
This is a summary of recent ratings and price targets for Alector and CG Oncology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alector | 2 | 1 | 3 | 0 | 2.17 |
| CG Oncology | 1 | 1 | 8 | 0 | 2.70 |
Alector currently has a consensus price target of $4.62, indicating a potential upside of 109.28%. CG Oncology has a consensus price target of $87.50, indicating a potential upside of 35.28%. Given Alector’s higher possible upside, equities research analysts plainly believe Alector is more favorable than CG Oncology.
Profitability
This table compares Alector and CG Oncology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alector | -850.13% | -531.03% | -44.00% |
| CG Oncology | -3,602.68% | -25.20% | -23.98% |
Institutional and Insider Ownership
85.8% of Alector shares are held by institutional investors. Comparatively, 26.6% of CG Oncology shares are held by institutional investors. 8.3% of Alector shares are held by insiders. Comparatively, 4.8% of CG Oncology shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Alector has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, CG Oncology has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.
Summary
Alector beats CG Oncology on 9 of the 14 factors compared between the two stocks.
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.
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.
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