Sol Gel Technologies (NASDAQ:SLGL) and Leap Therapeutics (NASDAQ:LPTX) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.
Volatility & Risk
Sol Gel Technologies has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Leap Therapeutics has a beta of 2.47, suggesting that its stock price is 147% more volatile than the S&P 500.
This table compares Sol Gel Technologies and Leap Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sol Gel Technologies||-300.12%||-67.88%||-60.86%|
Earnings and Valuation
This table compares Sol Gel Technologies and Leap Therapeutics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sol Gel Technologies||$130,000.00||1,254.74||-$32.20 million||($1.80)||-4.79|
|Leap Therapeutics||N/A||N/A||-$23.14 million||($2.51)||-0.46|
Leap Therapeutics has lower revenue, but higher earnings than Sol Gel Technologies. Sol Gel Technologies is trading at a lower price-to-earnings ratio than Leap Therapeutics, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Sol Gel Technologies and Leap Therapeutics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sol Gel Technologies||0||0||1||0||3.00|
Sol Gel Technologies currently has a consensus price target of $23.00, indicating a potential upside of 166.82%. Leap Therapeutics has a consensus price target of $9.00, indicating a potential upside of 675.86%. Given Leap Therapeutics’ higher probable upside, analysts plainly believe Leap Therapeutics is more favorable than Sol Gel Technologies.
Insider and Institutional Ownership
19.9% of Sol Gel Technologies shares are held by institutional investors. Comparatively, 10.9% of Leap Therapeutics shares are held by institutional investors. 36.1% of Leap Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Leap Therapeutics beats Sol Gel Technologies on 7 of the 12 factors compared between the two stocks.
About Sol Gel Technologies
Sol-Gel Technologies Ltd., a clinical-stage specialty pharmaceutical company, focuses on developing and commercializing topical dermatological drug products based on its proprietary microencapsulation delivery system in Israel. The company's lead product candidates include TWIN and SIRS-T, which has completed Phase II clinical trials for the treatment of acne vulgaris; and VERED that has completed Phase II clinical trials for the treatment of papulopustular rosacea. It is also involved in the development of generic dermatological drug products. Sol-Gel Technologies Ltd. has collaboration with Perrigo; and Douglas Pharmaceuticals for the development and commercialization of a generic product candidate. The company was founded in 1997 and is headquartered in Ness Ziona, Israel.
About Leap Therapeutics
Leap Therapeutics, Inc., a biopharmaceutical company, acquires and develops therapies for the treatment of cancer. Its clinical stage programs include DKN-01, a monoclonal antibody that inhibits Dickkopf-related protein 1, which is in Phase I/II clinical trial in patients with esophagogastric, biliary tract, gynecologic, and non-small cell lung cancers, as well as hepatocellular carcinoma, a type of liver cancer. The company's clinical stage programs also include TRX518, a monoclonal antibody, which is in clinical trial targeting the glucocorticoid-induced tumor necrosis factor-related receptor in patients with solid tumors. It has collaboration agreement with Merck KGaA and Pfizer Inc. to evaluate the company's TRX518, a GITR agonist, in combination with avelumab, a human anti-PD-L1 IgG1 monoclonal antibody, and chemotherapy. The company was formerly known as HealthCare Pharmaceuticals, Inc. and changed its name to Leap Therapeutics, Inc. in November 2015. Leap Therapeutics, Inc. was founded in 2011 and is based in Cambridge, Massachusetts.
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