Critical Review: CARGO Therapeutics (NASDAQ:CRGX) & JATT Acquisition (NYSE:JATT)

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

Analyst Ratings

This is a summary of recent ratings for JATT Acquisition and CARGO Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JATT Acquisition	0	0	0	0	0.00
CARGO Therapeutics	0	0	8	0	3.00

CARGO Therapeutics has a consensus price target of $30.33, indicating a potential upside of 66.85%. Given CARGO Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe CARGO Therapeutics is more favorable than JATT Acquisition.

Profitability

This table compares JATT Acquisition and CARGO Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JATT Acquisition	N/A	-49.58%	2.84%
CARGO Therapeutics	N/A	-38.16%	-33.94%

Valuation & Earnings

This table compares JATT Acquisition and CARGO Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JATT Acquisition	N/A	N/A	$6.85 million	N/A	N/A
CARGO Therapeutics	N/A	N/A	-$98.15 million	($4.26)	-4.27

Insider and Institutional Ownership

48.0% of JATT Acquisition shares are owned by institutional investors. Comparatively, 93.2% of CARGO Therapeutics shares are owned by institutional investors. 20.0% of JATT Acquisition 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

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

About JATT Acquisition

JATT Acquisition Corp does not have significant operations. It intends to effect a merger, capital share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. The company intends to focus on businesses primarily operating in the life sciences sector. JATT Acquisition Corp was incorporated in 2021 and is based in Grand Cayman, the Cayman Islands.

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.