Analyzing Promis Neurosciences (NASDAQ:PMN) & CervoMed (NASDAQ:CRVO)

Promis Neurosciences (NASDAQ:PMN) and CervoMed (NASDAQ:CRVO) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Earnings and Valuation

This table compares Promis Neurosciences and CervoMed”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Promis Neurosciences	N/A	N/A	$2.78 million	($0.21)	-2.37
CervoMed	$9.74 million	8.26	-$16.29 million	($2.61)	-3.33

Promis Neurosciences has higher earnings, but lower revenue than CervoMed. CervoMed is trading at a lower price-to-earnings ratio than Promis Neurosciences, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Promis Neurosciences and CervoMed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Promis Neurosciences	N/A	-266.69%	-131.59%
CervoMed	-290.72%	-59.15%	-53.64%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Promis Neurosciences and CervoMed, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Promis Neurosciences	1	0	3	0	2.50
CervoMed	2	1	6	1	2.60

Promis Neurosciences currently has a consensus price target of $4.33, suggesting a potential upside of 770.15%. CervoMed has a consensus price target of $19.29, suggesting a potential upside of 121.67%. Given Promis Neurosciences’ higher probable upside, equities analysts clearly believe Promis Neurosciences is more favorable than CervoMed.

Insider & Institutional Ownership

50.1% of Promis Neurosciences shares are held by institutional investors. Comparatively, 25.2% of CervoMed shares are held by institutional investors. 6.1% of Promis Neurosciences shares are held by insiders. Comparatively, 35.4% of CervoMed shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Promis Neurosciences has a beta of -0.17, meaning that its stock price is 117% less volatile than the S&P 500. Comparatively, CervoMed has a beta of -0.84, meaning that its stock price is 184% less volatile than the S&P 500.

About Promis Neurosciences

ProMIS Neurosciences, Inc. discovers and develops antibody therapies and therapeutic vaccines neurodegenerative diseases and other misfolded protein diseases in Canada. The company’s proprietary discovery platform comprises ProMIS and Collective Coordinates algorithms to predict novel targets known as disease specific epitopes on the molecular surface of misfolded proteins. Its lead product candidates comprise of PMN310, a monoclonal antibody (mAb) for toxic oligomers in AD; PMN267, a TDP-43; and PMN442, a mAb targeting toxic a-syn oligomers and seeding fibrils. The company was formerly known as Amorfix Life Sciences Ltd. and changed its name to ProMIS Neurosciences, Inc. in July 2015. ProMIS Neurosciences, Inc. was incorporated in 2004 and is headquartered in Toronto, Canada.

About CervoMed

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.