Lite Strategy (NASDAQ:LITS) vs. Intellipharmaceutics International (OTCMKTS:IPCIF) Financial Analysis

Intellipharmaceutics International (OTCMKTS:IPCIF) and Lite Strategy (NASDAQ:LITS) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Institutional & Insider Ownership

52.4% of Lite Strategy shares are held by institutional investors. 1.8% of Intellipharmaceutics International shares are held by company insiders. Comparatively, 1.6% of Lite Strategy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Intellipharmaceutics International and Lite Strategy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intellipharmaceutics International	N/A	N/A	N/A
Lite Strategy	N/A	-26.58%	-24.93%

Risk and Volatility

Intellipharmaceutics International has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Lite Strategy has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Intellipharmaceutics International and Lite Strategy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intellipharmaceutics International	0	0	0	0	0.00
Lite Strategy	1	0	0	0	1.00

Given Intellipharmaceutics International’s higher possible upside, analysts plainly believe Intellipharmaceutics International is more favorable than Lite Strategy.

Valuation and Earnings

This table compares Intellipharmaceutics International and Lite Strategy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intellipharmaceutics International	$660,000.00	0.00	-$2.89 million	($0.16)	N/A
Lite Strategy	$65.30 million	0.72	-$15.94 million	($0.99)	-1.28

Intellipharmaceutics International has higher earnings, but lower revenue than Lite Strategy. Lite Strategy is trading at a lower price-to-earnings ratio than Intellipharmaceutics International, indicating that it is currently the more affordable of the two stocks.

Summary

Intellipharmaceutics International beats Lite Strategy on 8 of the 11 factors compared between the two stocks.

About Intellipharmaceutics International

Intellipharmaceutics International Inc., a pharmaceutical company, researches, develops, and manufactures novel and generic controlled-release and targeted-release oral solid dosage drugs in the United States. It develops various drug delivery systems, product candidates, and a pipeline of products based on its patented Hypermatrix technology in various therapeutic areas, including neurology, cardiovascular, gastrointestinal tract, diabetes, and pain. The company offers Focalin XR, a dexmethylphenidate hydrochloride extended-release capsule for hyperactivity disorder; Keppra XR, a levetiracetam extended-release tablet for the treatment of partial onset seizures in patients with epilepsy; Effexor XR, a venlafaxine hydrochloride extended-release capsule to treat depression; and Protonix, a pantoprazole sodium delayed-release tablet to treat gastroesophageal reflux disease. In addition, it provides Glucophage XR, a metformin hydrochloride extended-release tablet that treats type 2 diabetes; Seroquel XR, a quetiapine fumarate extended-release tablet for the treatment of schizophrenia, bipolar disorder, and major depressive disorders; Lamictal XR, a lamotrigine extended release tablet to treat epilepsy; Pristiq, a desvenlafaxine extended-release tablet to treat depression; Coreg CR, a carvedilol phosphate extended-release capsule for heart failure and hypertension; and Ranexa, a ranolazine extended release tablet for chronic angina. Further, the company is developing OxyContin, an oxycodone hydrochloride controlled-release capsule for pain; OxyContin, an oxycodone hydrochloride controlled-release capsule for pain; and Regabatin XR, a pregabalin extended-release capsule for the management of neuropathic pain. It has a license and commercialization agreement with Par Pharmaceutical Inc. Intellipharmaceutics International Inc. was founded in 1998 and is based in Toronto, Canada.

About Lite Strategy

MEI Pharma, Inc., a late-stage pharmaceutical company, focuses on the development and commercialization of various therapies for the treatment of cancer. The company develops Zandelisib, an oral phosphatidylinositol 3-kinase delta inhibitor that is in Phase III clinical trial for the treatment of patients with relapsed/refractory follicular lymphoma, as well as in Phase Ib multi-arm trial to treat B-cell malignancies; and Voruciclib, an oral cyclin-dependent kinase 9 inhibitor, which is in Phase Ib clinical trial for acute myeloid leukemia and B-cell malignancies. It also develops ME-344, a mitochondrial inhibitor targeting the oxidative phosphorylation complex that is in Phase I clinical trial for the treatment of human epidermal growth factor receptor 2 negative breast cancer; and Pracinostat, an oral available histone deacetylase inhibitor, which is in Phase II clinical trial to treat patients with myelodysplastic syndrome. MEI Pharma, Inc. has a license, development, and commercialization agreement with Kyowa Kirin Company; a clinical collaboration with BeiGene, Ltd.; a license, development, manufacturing, and commercialization agreement with Helsinn Healthcare SA; and a license agreement with Presage Biosciences, Inc. The company was formerly known as Marshall Edwards, Inc. and changed its name to MEI Pharma, Inc. in July 2012. MEI Pharma, Inc. was incorporated in 2000 and is headquartered in San Diego, California.