Head-To-Head Survey: Elite Pharmaceuticals (OTCMKTS:ELTP) vs. Larimar Therapeutics (NASDAQ:LRMR)

Larimar Therapeutics (NASDAQ:LRMR) and Elite Pharmaceuticals (OTCMKTS:ELTP) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.

Valuation & Earnings

This table compares Larimar Therapeutics and Elite Pharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Larimar Therapeutics	N/A	N/A	-$80.60 million	($1.93)	-1.75
Elite Pharmaceuticals	$84.04 million	8.53	-$4.32 million	($0.01)	-66.75

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

Institutional & Insider Ownership

91.9% of Larimar Therapeutics shares are held by institutional investors. Comparatively, 0.0% of Elite Pharmaceuticals shares are held by institutional investors. 4.5% of Larimar Therapeutics shares are held by company insiders. Comparatively, 14.4% of Elite Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Larimar Therapeutics has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Elite Pharmaceuticals has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500.

Profitability

This table compares Larimar Therapeutics and Elite Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Larimar Therapeutics	N/A	-91.83%	-74.60%
Elite Pharmaceuticals	-10.26%	-9.88%	-4.72%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Larimar Therapeutics and Elite Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Larimar Therapeutics	1	0	9	0	2.80
Elite Pharmaceuticals	0	0	0	0	0.00

Larimar Therapeutics presently has a consensus price target of $16.71, suggesting a potential upside of 395.97%. Given Larimar Therapeutics’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Larimar Therapeutics is more favorable than Elite Pharmaceuticals.

Summary

Larimar Therapeutics beats Elite Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

About Larimar Therapeutics

Larimar Therapeutics, Inc., a clinical-stage biotechnology company, focuses on developing treatments for rare diseases using its novel cell penetrating peptide technology platform. Its lead product candidate is CTI-1601, which is in Phase 2 OLE clinical trial for the treatment of Friedreich's ataxia, a rare, progressive and fatal genetic disease. Larimar Therapeutics, Inc. is based in Bala Cynwyd, Pennsylvania.

About Elite Pharmaceuticals

Elite Pharmaceuticals, Inc., a specialty pharmaceutical company, engages in the development, manufacture, and sale of oral, controlled-release products, and generic pharmaceuticals. The company operates in two segments, Abbreviated New Drug Applications for Generic Pharmaceuticals and New Drug Applications for Branded Pharmaceuticals. It owns, licenses, manufactures, and sells various generic and oral dose pharmaceuticals products, such as Phentermine HCl 37.5mg tablets, and 15mg and 30mg capsules for the treatment of bariatrics under Adipex-P brand; Phendimetrazine Tartrate 35mg tablets for bariatrics under the Bontril brand; Naltrexone HCl 50mg tablets for the treatment of pains under the Revia brand; and Isradipine 2.5mg and 5mg capsules for cardiovascular diseases. The company also provides Trimipramine Maleate Immediate Release antidepressant capsules under the Surmontil brand; Dextroamphetamine Saccharate, Amphetamine Aspartate, Dextroamphetamine Sulfate, and Amphetamine Sulfate Immediate Release tablets under the Adderall brand, as well as Dextroamphetamine Saccharate, Amphetamine Aspartate, Dextroamphetamine Sulfate, Amphetamine Sulfate Extended Release capsules under the Adderall XR brand for central nervous system diseases; Dantrolene Sodium capsules for muscle relaxant under the Dantrium brand; SequestOX, an immediate release Oxycodone with Naltrexone; Loxapine Succinate capsules for treating antipsychotic under the Loxapine brand; Acetaminophen and Codeine Phosphate for the management of mild to moderate pain; and antibiotic products. In addition, it manufactures controlled-release products on a contract basis for third parties in the areas of pain, allergy, bariatric, attention deficit, and infection. Further, the company is developing a range of abuse deterrent opioid products. Elite Pharmaceuticals, Inc. was incorporated in 1997 and is headquartered in Northvale, New Jersey.