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

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Cyclerion Therapeutics and Response Genetics, as provided by MarketBeat.com.

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

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

Earnings and Valuation

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

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

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

Profitability

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

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

Insider & Institutional Ownership

75.6% of Cyclerion Therapeutics shares are owned by institutional investors. 34.3% of Cyclerion Therapeutics shares are owned by insiders. Comparatively, 4.9% of Response Genetics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

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

Summary

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

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.

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.