Comparing CervoMed (CRVO) and Its Peers

CervoMed (NASDAQ:CRVO) is one of 1,077 publicly-traded companies in the “Pharmaceutical preparations” industry, but how does it contrast to its competitors? We will compare CervoMed to similar companies based on the strength of its dividends, institutional ownership, profitability, valuation, risk, analyst recommendations and earnings.

Institutional and Insider Ownership

25.1% of CervoMed shares are held by institutional investors. Comparatively, 43.9% of shares of all “Pharmaceutical preparations” companies are held by institutional investors. 35.4% of CervoMed shares are held by insiders. Comparatively, 13.6% of shares of all “Pharmaceutical preparations” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for CervoMed and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CervoMed	1	1	5	2	2.89
CervoMed Competitors	8799	22823	51209	1428	2.54

CervoMed presently has a consensus target price of $27.63, suggesting a potential upside of 288.54%. As a group, “Pharmaceutical preparations” companies have a potential upside of 2,571.77%. Given CervoMed’s competitors higher possible upside, analysts clearly believe CervoMed has less favorable growth aspects than its competitors.

Profitability

This table compares CervoMed and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CervoMed	-118.68%	-44.11%	-39.81%
CervoMed Competitors	-3,399.87%	-235.11%	-32.77%

Risk and Volatility

CervoMed has a beta of -0.23, indicating that its share price is 123% less volatile than the S&P 500. Comparatively, CervoMed’s competitors have a beta of 4.27, indicating that their average share price is 327% more volatile than the S&P 500.

Earnings and Valuation

This table compares CervoMed and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CervoMed	$7.14 million	-$2.17 million	-3.26
CervoMed Competitors	$9.91 billion	$136.15 million	-5.23

CervoMed’s competitors have higher revenue and earnings than CervoMed. CervoMed is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

CervoMed competitors beat CervoMed on 7 of the 13 factors compared.

CervoMed Company Profile

CervoMed Inc., a biotechnology company, engages in the development and commercialization of treatments for age-related neurologic disorders. Its lead drug candidate is neflamapimod, an orally administered small molecule brain penetrant for the treatment of dementia with Lewy bodies (DLB), Alzheimer's diseases, frontotemporal dementia, and ischemic stroke recovery. The company also develops EIP200 for central nervous system which is in preclinical trials. CervoMed Inc. was founded in 2010 and is headquartered in Boston, Massachusetts.