Critical Survey: Eloxx Pharmaceuticals (NASDAQ:ELOX) and Cortexyme (NASDAQ:CRTX)

Profitability

This table compares Cortexyme and Eloxx Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cortexyme	N/A	-70.96%	-63.53%
Eloxx Pharmaceuticals	N/A	N/A	N/A

Insider & Institutional Ownership

63.2% of Cortexyme shares are held by institutional investors. Comparatively, 2.9% of Eloxx Pharmaceuticals shares are held by institutional investors. 27.9% of Cortexyme shares are held by company insiders. Comparatively, 20.2% of Eloxx Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Cortexyme and Eloxx Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cortexyme	N/A	N/A	-$89.94 million	($2.97)	-1.16
Eloxx Pharmaceuticals	N/A	N/A	-$36.06 million	($9.07)	0.00

Cortexyme is trading at a lower price-to-earnings ratio than Eloxx Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Cortexyme has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Eloxx Pharmaceuticals has a beta of -1702.41, indicating that its stock price is 170,341% less volatile than the S&P 500.

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.

About Eloxx Pharmaceuticals

Eloxx Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on developing ribosome modulation for the treatment of rare and ultra-rare premature stop codon diseases. Its lead investigational drug product candidate is ELX-02, which is in Phase 2 clinical trial for the treatment of cystic fibrosis and nephropathic cystinosis patients with diagnosed nonsense mutations. The company also develops various preclinical programs for the treatment of alport syndrome, recessive dystrophic epidermolysis bullosa, junctional epidermolysis bullosa, and familial adenomatous polyposis, as well as various earlier discovery stage programs in oncology. Eloxx Pharmaceuticals, Inc. was founded in 2013 and is headquartered in Watertown, Massachusetts.