Amarin (NASDAQ:AMRN) & Leap Therapeutics (NASDAQ:LPTX) Critical Analysis

Leap Therapeutics (NASDAQ:LPTXGet Free Report) and Amarin (NASDAQ:AMRNGet Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Institutional & Insider Ownership

30.5% of Leap Therapeutics shares are owned by institutional investors. Comparatively, 22.3% of Amarin shares are owned by institutional investors. 5.4% of Leap Therapeutics shares are owned by insiders. Comparatively, 2.0% of Amarin shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Leap Therapeutics has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, Amarin has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500.

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%

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 74.59 -$81.41 million ($1.93) -1.51
Amarin $241.02 million 0.88 -$59.11 million ($0.09) -5.76

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Leap Therapeutics and Amarin, as reported 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 currently has a consensus price target of $7.50, suggesting a potential upside of 156.85%. Given Leap Therapeutics’ higher probable upside, analysts plainly believe Leap Therapeutics is more favorable than Amarin.

Summary

Leap Therapeutics beats Amarin on 7 of the 13 factors compared between the two stocks.

About Leap Therapeutics

(Get Free Report)

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

(Get Free Report)

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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