Leap Therapeutics (NASDAQ:LPTX – Get Free Report) and Amarin (NASDAQ:AMRN – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Volatility and Risk
Leap Therapeutics has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500. Comparatively, Amarin has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.
Valuation and Earnings
This table compares Leap Therapeutics and Amarin”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Leap Therapeutics | $1.50 million | 85.58 | -$81.41 million | ($1.93) | -1.74 |
| Amarin | $241.02 million | 0.90 | -$59.11 million | ($0.09) | -5.87 |
Insider and Institutional Ownership
30.5% of Leap Therapeutics shares are held by institutional investors. Comparatively, 22.3% of Amarin shares are held by institutional investors. 5.4% of Leap Therapeutics shares are held by insiders. Comparatively, 2.0% of Amarin shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Leap Therapeutics and Amarin, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Leap Therapeutics | 0 | 0 | 3 | 0 | 3.00 |
| Amarin | 0 | 0 | 1 | 0 | 3.00 |
Leap Therapeutics presently has a consensus price target of $7.50, suggesting a potential upside of 123.88%. Given Leap Therapeutics’ higher probable upside, equities analysts plainly believe Leap Therapeutics is more favorable than Amarin.
Profitability
This table compares Leap Therapeutics and Amarin’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Leap Therapeutics | N/A | -116.24% | -93.18% |
| Amarin | -16.33% | -7.22% | -4.96% |
Summary
Leap Therapeutics beats Amarin on 7 of the 13 factors compared between the two stocks.
About Leap Therapeutics
Leap Therapeutics, Inc., a biopharmaceutical company, acquires and develops antibody therapies for the treatment of cancer. Its lead product candidates include DKN-01, a monoclonal antibody that inhibits Dickkopf-related protein 1, which is in multiple ongoing clinical trials for treating esophagogastric and gynecologic cancers; and FL-301, a monoclonal antibody that targets cells that express Claudin18.2 on their cell surface and is in phase II clinical trial, as well as two preclinical antibody programs, FL-302 and FL-501. Leap Therapeutics, Inc. has an option and license agreement with NovaRock, Adimab, and BeiGene, Ltd. to develop and commercialize DKN-01 in Asia (excluding Japan), Australia, and New Zealand. The company was formerly known as HealthCare Pharmaceuticals, Inc. and changed its name to Leap Therapeutics, Inc. in November 2015. Leap Therapeutics, Inc. was incorporated in 2011 and is based in Cambridge, Massachusetts.
About Amarin
Amarin Corporation plc, a pharmaceutical company, engages in the development and commercialization of therapeutics for the treatment of cardiovascular diseases in the United States, European countries, Canada, Lebanon, and the United Arab Emirates. The company offers VASCEPA, a prescription-only omega-3 fatty acid product, used as an adjunct to diet for reducing triglyceride levels in adult patients with severe hypertriglyceridemia. It sells its products principally to wholesalers and specialty pharmacy providers. The company has a collaboration with Mochida Pharmaceutical Co., Ltd. to develop and commercialize drug products and indications based on the active pharmaceutical ingredient in Vascepa. The company was formerly known as Ethical Holdings plc and changed its name to Amarin Corporation plc in 1999. Amarin Corporation plc was incorporated in 1989 and is headquartered in Dublin, Ireland.
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