Amarin (NASDAQ:AMRN – Get Free Report) and Leap Therapeutics (NASDAQ:LPTX – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.
Profitability
This table compares Amarin and Leap Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amarin | -16.33% | -7.22% | -4.96% |
| Leap Therapeutics | N/A | -116.24% | -93.18% |
Insider and Institutional Ownership
22.3% of Amarin shares are owned by institutional investors. Comparatively, 30.5% of Leap Therapeutics shares are owned by institutional investors. 2.0% of Amarin shares are owned by company insiders. Comparatively, 5.4% of Leap Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Valuation & Earnings
This table compares Amarin and Leap Therapeutics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amarin | $306.91 million | 0.74 | -$59.11 million | ($0.09) | -6.15 |
| Leap Therapeutics | $1.50 million | 86.34 | -$81.41 million | ($1.93) | -1.75 |
Amarin has higher revenue and earnings than Leap Therapeutics. Amarin 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 current ratings and target prices for Amarin and Leap Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amarin | 0 | 0 | 1 | 0 | 3.00 |
| Leap Therapeutics | 0 | 0 | 3 | 0 | 3.00 |
Leap Therapeutics has a consensus price target of $7.50, indicating a potential upside of 121.89%. Given Leap Therapeutics’ higher possible upside, analysts plainly believe Leap Therapeutics is more favorable than Amarin.
About Amarin
Amarin Corporation plc, a pharmaceutical company, engages in the development and commercialization of therapeutics for the treatment of cardiovascular diseases in the United States, European countries, Canada, Lebanon, and the United Arab Emirates. The company offers VASCEPA, a prescription-only omega-3 fatty acid product, used as an adjunct to diet for reducing triglyceride levels in adult patients with severe hypertriglyceridemia. It sells its products principally to wholesalers and specialty pharmacy providers. The company has a collaboration with Mochida Pharmaceutical Co., Ltd. to develop and commercialize drug products and indications based on the active pharmaceutical ingredient in Vascepa. The company was formerly known as Ethical Holdings plc and changed its name to Amarin Corporation plc in 1999. Amarin Corporation plc was incorporated in 1989 and is headquartered in Dublin, Ireland.
About Leap Therapeutics
Leap Therapeutics, Inc., a biopharmaceutical company, acquires and develops antibody therapies for the treatment of cancer. Its lead product candidates include DKN-01, a monoclonal antibody that inhibits Dickkopf-related protein 1, which is in multiple ongoing clinical trials for treating esophagogastric and gynecologic cancers; and FL-301, a monoclonal antibody that targets cells that express Claudin18.2 on their cell surface and is in phase II clinical trial, as well as two preclinical antibody programs, FL-302 and FL-501. Leap Therapeutics, Inc. has an option and license agreement with NovaRock, Adimab, and 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.
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