Leap Therapeutics (NASDAQ:LPTX) and Osmotica Pharmaceuticals (NASDAQ:OSMT) Critical Review

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

Valuation and Earnings

This table compares Leap Therapeutics and Osmotica Pharmaceuticals’ gross 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 -$23.14 million ($2.51) -0.58
Osmotica Pharmaceuticals $263.70 million 0.59 -$109.40 million ($0.51) -5.88

Leap Therapeutics has higher earnings, but lower revenue than Osmotica Pharmaceuticals. Osmotica Pharmaceuticals 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 summary of recent ratings and target prices for Leap Therapeutics and Osmotica Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leap Therapeutics 0 0 2 0 3.00
Osmotica Pharmaceuticals 0 0 4 0 3.00

Leap Therapeutics presently has a consensus target price of $10.50, indicating a potential upside of 619.18%. Osmotica Pharmaceuticals has a consensus target price of $13.00, indicating a potential upside of 333.33%. Given Leap Therapeutics’ higher possible upside, equities analysts plainly believe Leap Therapeutics is more favorable than Osmotica Pharmaceuticals.

Institutional & Insider Ownership

8.8% of Leap Therapeutics shares are held by institutional investors. Comparatively, 11.7% of Osmotica Pharmaceuticals shares are held by institutional investors. 36.1% of Leap Therapeutics shares are held by insiders. Comparatively, 4.7% of Osmotica Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Leap Therapeutics N/A -297.79% -141.13%
Osmotica Pharmaceuticals -97.91% -32.14% -15.08%

Summary

Osmotica Pharmaceuticals beats Leap Therapeutics on 6 of the 10 factors compared between the two stocks.

Leap Therapeutics Company Profile

Leap Therapeutics, Inc., a biopharmaceutical company, acquires and develops therapies for the treatment of cancer. Its clinical stage programs include DKN-01, a monoclonal antibody that inhibits Dickkopf-related protein 1, which is in Phase I/II clinical trial in patients with esophagogastric, biliary tract, gynecologic, and non-small cell lung cancers, as well as hepatocellular carcinoma, a type of liver cancer. The company's clinical stage programs also include TRX518, a monoclonal antibody, which is in clinical trial targeting the glucocorticoid-induced tumor necrosis factor-related receptor in patients with solid tumors. It has collaboration agreement with Merck KGaA and Pfizer Inc. to evaluate the company's TRX518, a GITR agonist, in combination with avelumab, a human anti-PD-L1 IgG1 monoclonal antibody, and chemotherapy. The company was formerly known as HealthCare Pharmaceuticals, Inc. and changed its name to Leap Therapeutics, Inc. in November 2015. Leap Therapeutics, Inc. was founded in 2011 and is based in Cambridge, Massachusetts.

Osmotica Pharmaceuticals Company Profile

Osmotica Pharmaceuticals plc, an integrated biopharmaceutical company, develops, manufactures, and commercializes specialty products that target markets with underserved patient populations. The company's promoted approved products include specialty neurology products, such as M-72 to treat ADHD; Osmolex ER for treating Parkinson's and drug-induced extrapyramidal reactions in adults; Lorzone for muscle spasms; ConZip to treat pain; and Ontinua ER for treating opioid withdrawal symptoms. It also provides women's health products, including Divigel for menopause, as well as OB Complete, a dietary supplement for prenatal, pregnancy, and postnatal periods; and RVL-1201 for treating Blepharoptos. In addition, the company's non-promoted approved products comprise Methylphenidate ER for ADHD; Venlafaxine ER tablets to treat major depressive disorder and social anxiety disorder; Hydromorphone ER for treating; Nifedipine ER for hypertension; Sodium Benzoate/Sodium Phenylacetate to treat hyperammonemia; Oxybutynin ER for overactive bladder; and prescription prenatal vitamins for treating nutritional requirements during pregnancy, as well as Osmodex ANDAs and other ANDAs for various treatments. Osmotica Pharmaceuticals plc is headquartered in Bridgewater, New Jersey.

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