CARGO Therapeutics (NASDAQ:CRGX) & Fennec Pharmaceuticals (NASDAQ:FENC) Head-To-Head Analysis

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

Analyst Ratings

This is a summary of recent recommendations for CARGO Therapeutics and Fennec Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CARGO Therapeutics	0	0	6	0	3.00
Fennec Pharmaceuticals	0	0	3	1	3.25

CARGO Therapeutics presently has a consensus price target of $31.80, indicating a potential upside of 150.00%. Fennec Pharmaceuticals has a consensus price target of $13.67, indicating a potential upside of 138.51%. Given CARGO Therapeutics’ higher probable upside, equities analysts clearly believe CARGO Therapeutics is more favorable than Fennec Pharmaceuticals.

Institutional & Insider Ownership

93.2% of CARGO Therapeutics shares are owned by institutional investors. Comparatively, 55.5% of Fennec Pharmaceuticals shares are owned by institutional investors. 1.4% of CARGO Therapeutics shares are owned by insiders. Comparatively, 11.0% of Fennec Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares CARGO Therapeutics and Fennec Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CARGO Therapeutics	N/A	-38.16%	-33.94%
Fennec Pharmaceuticals	-2.30%	-53.38%	-2.08%

Earnings and Valuation

This table compares CARGO Therapeutics and Fennec Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CARGO Therapeutics	N/A	N/A	-$98.15 million	($4.26)	-2.99
Fennec Pharmaceuticals	$21.25 million	7.42	-$16.05 million	($0.10)	-57.29

Fennec Pharmaceuticals has higher revenue and earnings than CARGO Therapeutics. Fennec Pharmaceuticals is trading at a lower price-to-earnings ratio than CARGO Therapeutics, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

CARGO Therapeutics has a beta of 2.5, indicating that its stock price is 150% more volatile than the S&P 500. Comparatively, Fennec Pharmaceuticals has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

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 Fennec Pharmaceuticals

Fennec Pharmaceuticals Inc., a biopharmaceutical company, develops product candidates for use in the treatment of cancer in the United States. Its lead product candidate is the Sodium Thiosulfate, which has completed the Phase III clinical trial for the prevention of cisplatin induced hearing loss or ototoxicity in children. The company was formerly known as Adherex Technologies Inc. and changed its name to Fennec Pharmaceuticals Inc. in September 2014. Fennec Pharmaceuticals Inc. was founded in 1996 and is based in Research Triangle Park, North Carolina.