CARGO Therapeutics (NASDAQ:CRGX) & Fennec Pharmaceuticals (NASDAQ:FENC) Financial Review

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

Profitability

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

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

Risk and Volatility

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fennec Pharmaceuticals	$21.25 million	8.42	-$16.05 million	($0.10)	-64.99
CARGO Therapeutics	N/A	N/A	-$98.15 million	($4.26)	-3.20

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.

Institutional & Insider Ownership

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

Analyst Recommendations

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

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

Fennec Pharmaceuticals currently has a consensus target price of $13.67, suggesting a potential upside of 110.26%. CARGO Therapeutics has a consensus target price of $31.80, suggesting a potential upside of 132.97%. Given CARGO Therapeutics’ higher probable upside, analysts plainly believe CARGO Therapeutics is more favorable than Fennec Pharmaceuticals.

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.

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.