Analyzing PaxMedica (NASDAQ:PXMD) and Leap Therapeutics (NASDAQ:LPTX)

Leap Therapeutics (NASDAQ:LPTX) and PaxMedica (NASDAQ:PXMD) are both small-cap manufacturing companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Insider & Institutional Ownership

30.5% of Leap Therapeutics shares are owned by institutional investors. Comparatively, 4.9% of PaxMedica shares are owned by institutional investors. 4.3% of Leap Therapeutics shares are owned by insiders. Comparatively, 1.0% of PaxMedica shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Leap Therapeutics has a beta of -0.06, suggesting that its stock price is 106% less volatile than the S&P 500. Comparatively, PaxMedica has a beta of -0.99, suggesting that its stock price is 199% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Leap Therapeutics and PaxMedica, as reported by MarketBeat.com.

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

Earnings & Valuation

This table compares Leap Therapeutics and PaxMedica”s gross revenue, earnings per share 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
PaxMedica	N/A	N/A	-$18.29 million	($6.09)	0.00

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

Profitability

This table compares Leap Therapeutics and PaxMedica’s 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%
PaxMedica	N/A	-3,167.89%	-560.35%

Summary

Leap Therapeutics beats PaxMedica on 7 of the 9 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 PaxMedica

PaxMedica, Inc., a clinical stage biopharmaceutical company, focuses on the development of anti-purinergic drug therapies for the treatment of disorders with intractable neurologic symptoms. Its lead product candidate is PAX-101 that is in Phase 3 clinical trials, an intravenous formulation of suramin for the treatment of autism spectrum disorder, myalgic encephalomyelitis/chronic fatigue syndrome, long COVID-19 syndrome, fragile X syndrome, human African trypanosomiasis (HAT), and fragile X-associated tremor/ataxia syndrome. The company is developing PAX-102, an intranasal formulation of suramin for neurologic indications, as well as other new chemical entities that are targeted and selective antagonists of purine receptor subtypes; and PAX-HAT-301 for the treatment of HAT. It has a research collaboration agreement with PolarMar Health for Phase II clinical trial in austism spectrum disorder for emodin, which retains the rights for PolarMar to develop and commercialize any non-prescription supplement form of the product, and for PaxMedica, Inc. to retain exclusive rights to develop and commercialize a highly purified form of emodin. The company was formerly known as Purinix Pharmaceuticals LLC and changed its name to PaxMedica, Inc. in April 2020. PaxMedica, Inc. was incorporated in 2018 and is based in Tarrytown, New York.