Critical Comparison: Leap Therapeutics (NASDAQ:LPTX) vs. Pharmaxis (OTCMKTS:PXSLY)

Leap Therapeutics (NASDAQ:LPTX) and Pharmaxis (OTCMKTS:PXSLY) are both small-cap manufacturing companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Profitability

This table compares Leap Therapeutics and Pharmaxis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leap Therapeutics	N/A	-247.44%	-146.51%
Pharmaxis	N/A	N/A	N/A

Valuation & Earnings

This table compares Leap Therapeutics and Pharmaxis”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leap Therapeutics	N/A	N/A	-$67.56 million	($1.22)	-1.68
Pharmaxis	$8.75 million	3.03	-$9.36 million	N/A	N/A

Pharmaxis has higher revenue and earnings than Leap Therapeutics.

Volatility & Risk

Leap Therapeutics has a beta of -0.06, meaning that its share price is 106% less volatile than the S&P 500. Comparatively, Pharmaxis has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Leap Therapeutics and Pharmaxis, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leap Therapeutics	1	0	0	0	1.00
Pharmaxis	0	0	0	0	0.00

Insider & Institutional Ownership

30.5% of Leap Therapeutics shares are held by institutional investors. 4.3% of Leap Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Pharmaxis beats Leap Therapeutics on 5 of the 8 factors compared between the two stocks.

About Leap Therapeutics

Leap Therapeutics, Inc., a biopharmaceutical company, acquires and develops therapies for the treatment of cancer. Its lead clinical stage programs include DKN-01, a monoclonal antibody that inhibits Dickkopf-related protein 1, which is in multiple ongoing clinical trials for treating esophagogastric, hepatobiliary, gynecologic, and prostate cancers. Leap Therapeutics, Inc. has an option and license agreement with 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 Pharmaxis

Pharmaxis Ltd engages in the research, development, and commercialization of healthcare products for the treatment of fibrotic and inflammatory diseases worldwide. The company operates through two segments, Mannitol business, and New Drug Development. It offers Bronchitol, an inhaled dry powder for the treatment of cystic fibrosis; and Aridol, an airways inflammation test that is used to identify twitchy or hyper-responsive airways, as well as to assist in diagnosing and managing asthma. The company's product pipeline consists of amine oxidase inhibitors comprising semicarbazide-sensitive amine oxidase for diabetic retinopathy; selective lysyl oxidase like inhibitors targeting chronic fibrotic diseases, such as NASH, pulmonary fibrosis, kidney fibrosis, and cardiac fibrosis; and pan-lysyl oxidase inhibitors targeting severe fibrotic indications, which includes cancers and scarring. It is also developing Orbital, a dry powder inhaler to deliver high drug doses to lungs. Pharmaxis Ltd was founded in 1998 and is headquartered in Frenchs Forest, Australia.