Reviewing Pharmaxis (OTCMKTS:PXSLY) and DiaMedica Therapeutics (NASDAQ:DMAC)

Pharmaxis (OTCMKTS:PXSLY) and DiaMedica Therapeutics (NASDAQ:DMAC) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Institutional & Insider Ownership

10.1% of DiaMedica Therapeutics shares are owned by institutional investors. 7.2% of DiaMedica Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pharmaxis	N/A	N/A	N/A
DiaMedica Therapeutics	N/A	-40.07%	-37.90%

Valuation and Earnings

This table compares Pharmaxis and DiaMedica Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pharmaxis	$8.75 million	3.03	-$9.36 million	N/A	N/A
DiaMedica Therapeutics	N/A	N/A	-$19.38 million	($0.62)	-5.60

Pharmaxis has higher revenue and earnings than DiaMedica Therapeutics.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Pharmaxis and DiaMedica Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pharmaxis	0	0	0	0	N/A
DiaMedica Therapeutics	0	0	2	0	3.00

DiaMedica Therapeutics has a consensus price target of $7.00, indicating a potential upside of 101.73%. Given DiaMedica Therapeutics’ higher possible upside, analysts plainly believe DiaMedica Therapeutics is more favorable than Pharmaxis.

Risk and Volatility

Pharmaxis has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, DiaMedica Therapeutics has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.

Summary

DiaMedica Therapeutics beats Pharmaxis on 5 of the 9 factors compared between the two stocks.

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.

About DiaMedica Therapeutics

DiaMedica Therapeutics Inc., a clinical stage biopharmaceutical company, focuses on improving the lives of people suffering from serious diseases with a focus on acute ischemic stroke. Its lead candidate is DM199, a pharmaceutically active recombinant form of the human tissue kallikrein-1 protein, which is in Phase II/III trials for the treatment of acute ischemic stroke, as well as that is in Phase 2 to treat cardio-renal disease. The company also develops DM300, which is in preclinical stage for the treatment of severe inflammatory diseases. In addition, it develops treatment for neurological disease. The company was formerly known as DiaMedica Inc. and changed its name to DiaMedica Therapeutics Inc. in December 2016. DiaMedica Therapeutics Inc. was incorporated in 2000 and is headquartered in Minneapolis, Minnesota.