Lexicon Pharmaceuticals (NASDAQ:LXRX) and Neurotrope (NASDAQ:NTRP) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Institutional and Insider Ownership
6.4% of Neurotrope shares are owned by institutional investors. 6.4% of Lexicon Pharmaceuticals shares are owned by insiders. Comparatively, 9.7% of Neurotrope shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Lexicon Pharmaceuticals and Neurotrope’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Lexicon Pharmaceuticals and Neurotrope, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lexicon Pharmaceuticals currently has a consensus price target of $5.25, suggesting a potential upside of 169.23%. Neurotrope has a consensus price target of $1.00, suggesting a potential upside of 12.36%. Given Lexicon Pharmaceuticals’ stronger consensus rating and higher possible upside, equities analysts clearly believe Lexicon Pharmaceuticals is more favorable than Neurotrope.
Earnings and Valuation
This table compares Lexicon Pharmaceuticals and Neurotrope’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lexicon Pharmaceuticals||$322.07 million||0.65||$130.13 million||$1.35||1.44|
Lexicon Pharmaceuticals has higher revenue and earnings than Neurotrope. Neurotrope is trading at a lower price-to-earnings ratio than Lexicon Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Lexicon Pharmaceuticals has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Neurotrope has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.
Lexicon Pharmaceuticals beats Neurotrope on 10 of the 13 factors compared between the two stocks.
About Lexicon Pharmaceuticals
Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of pharmaceutical products. The company offers XERMELO, an orally-delivered small molecule drug candidate for the treatment of carcinoid syndrome diarrhea in combination with somatostatin analog therapy in adults. Its orally-delivered small molecule drug candidates under development comprise Sotagliflozin that is in Phase III clinical trials for the treatment of type 1 and type 2 diabetes; LX9211, which is in Phase Ib clinical development for the treatment of neuropathic pain; and LX2761 that is in Phase I clinical development for the treatment of diabetes. The company has strategic collaboration and license agreements with Sanofi; Ipsen Pharma SAS; Bristol-Myers Squibb Company; and Genentech, Inc. Lexicon Pharmaceuticals, Inc. was founded in 1995 and is headquartered in The Woodlands, Texas.
Neurotrope, Inc., a biopharmaceutical company, focuses on the development of a product platform for the treatment of Alzheimer's disease. Its lead product candidate is bryostatin, a natural product isolated from a marine invertebrate organism, a bryozoan called Bugula neritina. The company also develops bryostatin for other neurodegenerative or cognitive diseases and dysfunctions, such as Fragile X syndrome, multiple sclerosis, and niemann-pick type C diseases. The company has a license agreement with The Board of Trustees of the Leland Stanford Junior University for the use of bryostatin structural derivatives, known as bryologs, for use in the treatment of central nervous system disorders, lysosomal storage diseases, stroke, cardio protection, and traumatic brain injury; and a license agreement to an accelerated synthesis of bryostatin-1. Neurotrope, Inc. also has a cooperative research and development agreement with the National Cancer Institute for the research and clinical development of Bryostatin-1. The company was founded in 2012 and is based in New York, New York.
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