Critical Analysis: ProMetic Life Sciences (OTCMKTS:PFSCF) & Larimar Therapeutics (NASDAQ:LRMR)

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for ProMetic Life Sciences and Larimar Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ProMetic Life Sciences	0	0	0	0	N/A
Larimar Therapeutics	0	0	6	0	3.00

Larimar Therapeutics has a consensus target price of $21.33, indicating a potential upside of 126.47%. Given Larimar Therapeutics’ higher probable upside, analysts plainly believe Larimar Therapeutics is more favorable than ProMetic Life Sciences.

Institutional & Insider Ownership

0.1% of ProMetic Life Sciences shares are owned by institutional investors. Comparatively, 91.9% of Larimar Therapeutics shares are owned by institutional investors. 4.3% of Larimar Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares ProMetic Life Sciences and Larimar Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ProMetic Life Sciences	-894.02%	-3,350.55%	-67.76%
Larimar Therapeutics	N/A	-35.69%	-32.21%

Volatility and Risk

ProMetic Life Sciences has a beta of 2.46, indicating that its share price is 146% more volatile than the S&P 500. Comparatively, Larimar Therapeutics has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Valuation and Earnings

This table compares ProMetic Life Sciences and Larimar Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ProMetic Life Sciences	$36.55 million	3.49	-$150.73 million	N/A	N/A
Larimar Therapeutics	N/A	N/A	-$36.95 million	($0.97)	-9.71

Larimar Therapeutics has lower revenue, but higher earnings than ProMetic Life Sciences.

Summary

Larimar Therapeutics beats ProMetic Life Sciences on 8 of the 10 factors compared between the two stocks.

About ProMetic Life Sciences

Prometic Life Sciences Inc. operates as a biopharmaceutical company with two drug discovery platforms that focuses on unmet medical needs in the field of fibrosis and orphan diseases. Its product pipeline includes PBI-4050, an orally active lead drug candidate for fibrosis; plasminogen, a biopharmaceutical for the treatment of congenital plasminogen deficiency; and intravenous immunoglobulin, a preparation of antibodies purified from plasma donations from healthy individuals. The company was founded in 1992 and is based in Laval, Canada.

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.