Reviewing CARGO Therapeutics (NASDAQ:CRGX) & Opthea (NASDAQ:OPT)

CARGO Therapeutics (NASDAQ:CRGX) and Opthea (NASDAQ:OPT) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

This table compares CARGO Therapeutics and Opthea’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CARGO Therapeutics	N/A	-50.68%	-38.69%
Opthea	N/A	N/A	N/A

Valuation & Earnings

This table compares CARGO Therapeutics and Opthea”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CARGO Therapeutics	N/A	N/A	-$98.15 million	($50.75)	-0.39
Opthea	$120,000.00	2,496.60	-$220.24 million	N/A	N/A

CARGO Therapeutics has higher earnings, but lower revenue than Opthea.

Analyst Ratings

This is a summary of current ratings and target prices for CARGO Therapeutics and Opthea, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CARGO Therapeutics	0	0	7	0	3.00
Opthea	0	0	1	0	3.00

CARGO Therapeutics currently has a consensus price target of $30.33, indicating a potential upside of 51.67%. Opthea has a consensus price target of $12.00, indicating a potential upside of 133.92%. Given Opthea’s higher probable upside, analysts plainly believe Opthea is more favorable than CARGO Therapeutics.

Institutional and Insider Ownership

93.2% of CARGO Therapeutics shares are held by institutional investors. Comparatively, 56.0% of Opthea shares are held by institutional investors. 1.4% of CARGO Therapeutics shares are held by insiders. Comparatively, 3.2% of Opthea shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Opthea beats CARGO Therapeutics on 5 of the 8 factors compared between the two stocks.

About CARGO Therapeutics

CARGO Therapeutics, Inc., a clinical-stage biotechnology company, develops chimeric antigen receptor (CAR) T-cell therapies for cancer patients. The company's lead program is CRG-022, an autologous CD22 CAR T-cell product candidate designed to address resistance mechanisms by targeting CD22, an alternate tumor antigen that is expressed in B-cell malignancies. It also develops CRG-023, a tri-specific CAR T product candidate that targets tumor cells with three B-cell antigen targets. The company was formerly known as Syncopation Life Sciences, Inc. and changed its name to CARGO Therapeutics, Inc. in September 2022. CARGO Therapeutics, Inc. was incorporated in 2019 and is headquartered in San Mateo, California.

About Opthea

Opthea Limited, a clinical stage biopharmaceutical company, engages in the development and commercialization of therapies primarily for eye disease in Australia. The company's development activities are based on the intellectual property portfolio covering Vascular Endothelial Growth Factors (VEGF) VEGF-C, VEGF-D, and VEGF Receptor-3 for the treatment of diseases associated with blood and lymphatic vessel growth, as well as vascular leakage. Its lead product candidate is Sozinibercept (OPT 302), a soluble form of vascular endothelial growth factor receptor-3 VEGFR-3, currently under Phase 3 clinical development as a novel therapy for wet age-related macular degeneration and diabetic macular edema. The company was formerly known as Circadian Technologies Limited and changed its name to Opthea Limited in December 2015. Opthea Limited was incorporated in 1984 and is based in South Yarra, Australia.