Contrasting Response Genetics (OTCMKTS:RGDXQ) and Cyclerion Therapeutics (NASDAQ:CYCN)

Response Genetics (OTCMKTS:RGDXQ) and Cyclerion Therapeutics (NASDAQ:CYCN) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Earnings & Valuation

This table compares Response Genetics and Cyclerion Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Response Genetics	N/A	N/A	N/A	N/A	N/A
Cyclerion Therapeutics	$2.00 million	2.63	-$3.06 million	($0.75)	-1.79

Response Genetics has higher earnings, but lower revenue than Cyclerion Therapeutics.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Response Genetics and Cyclerion Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Response Genetics	0	0	0	0	0.00
Cyclerion Therapeutics	1	0	0	0	1.00

Given Response Genetics’ higher probable upside, analysts clearly believe Response Genetics is more favorable than Cyclerion Therapeutics.

Profitability

This table compares Response Genetics and Cyclerion Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Response Genetics	N/A	N/A	N/A
Cyclerion Therapeutics	-77.02%	-24.61%	-22.43%

Institutional & Insider Ownership

75.6% of Cyclerion Therapeutics shares are held by institutional investors. 4.9% of Response Genetics shares are held by insiders. Comparatively, 34.3% of Cyclerion Therapeutics 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 & Risk

Response Genetics has a beta of 2.9, suggesting that its share price is 190% more volatile than the S&P 500. Comparatively, Cyclerion Therapeutics has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Summary

Response Genetics beats Cyclerion Therapeutics on 5 of the 9 factors compared between the two stocks.

About Response Genetics

Response Genetics, Inc., a life sciences company, researches, develops, markets, and sells pharmacogenomic tests for use in the treatment of cancer in the United States, Europe, and internationally. The company offers tests for measuring predictive factors for therapy response in tumor tissue samples. It provides testing services for non-small cell lung cancer, colorectal cancer, gastric and gastroesophageal cancer, melanoma and thyroid cancer, breast cancer, and glioma through its ResponseDX: Lung, ResponseDX: Colon, ResponseDX: Gastric, ResponseDX: Melanoma, ResponseDX: Thyroid, ResponseDX: Breast, ResponseDX: Glioma, and ResponseDX: Tissue of Origin test suites. The company also develops tests for other tumor types; and provides technical component and professional component testing services. It serves community based oncologists, pathologists, physician offices, hospitals, and pharmaceutical companies through its sales force. The company was formerly known as Bio Type, Inc. and changed its name to Response Genetics, Inc. in August 2000. Response Genetics, Inc. was founded in 1999 and is headquartered in Los Angeles, California.

About Cyclerion Therapeutics

Cyclerion Therapeutics, Inc., a biopharmaceutical company, develops treatments for serious diseases. It is developing Olinciguat, an orally administered vascular soluble guanylate cyclase (sGC) stimulator, which is in Phase 2 clinical trial to out-license for cardiovascular diseases; and Praliciguat, a systemic sGC stimulator that is licensed to Akebia Therapeutics, Inc. for the treatment of rare kidney disease. The company was incorporated in 2018 and is headquartered in Cambridge, Massachusetts.