Reviewing Larimar Therapeutics (NASDAQ:LRMR) and Cardax (OTCMKTS:CDXI)

Cardax (OTCMKTS:CDXI) 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 valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Volatility and Risk

Cardax has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Larimar Therapeutics has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Profitability

This table compares Cardax and Larimar Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cardax -891.77% N/A -297.64%
Larimar Therapeutics N/A -38.70% -31.40%

Analyst Recommendations

This is a summary of current ratings for Cardax and Larimar Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardax 0 0 0 0 N/A
Larimar Therapeutics 0 0 2 0 3.00

Larimar Therapeutics has a consensus target price of $29.00, suggesting a potential upside of 118.05%. Given Larimar Therapeutics’ higher possible upside, analysts clearly believe Larimar Therapeutics is more favorable than Cardax.

Valuation & Earnings

This table compares Cardax and Larimar Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cardax $710,000.00 1.99 -$5.09 million N/A N/A
Larimar Therapeutics N/A N/A -$45.41 million N/A N/A

Cardax has higher revenue and earnings than Larimar Therapeutics.

Institutional and Insider Ownership

8.7% of Cardax shares are owned by institutional investors. Comparatively, 88.8% of Larimar Therapeutics shares are owned by institutional investors. 5.1% of Larimar Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Larimar Therapeutics beats Cardax on 6 of the 10 factors compared between the two stocks.

Cardax Company Profile

Cardax, Inc., a biopharmaceutical company, develops and commercializes dietary supplements for inflammatory health and pharmaceuticals for chronic diseases driven by inflammation and oxidative stress. It offers ZanthoSyn, an inflammatory supplement for health and longevity that provides astaxanthin with enhanced absorption and purity. The company sells ZanthoSyn primarily through e-commerce and wholesale channels. It is also developing CDX-101, an astaxanthin pharmaceutical candidate; and CDX-301, a zeaxanthin pharmaceutical candidate for pharmaceutical applications. Cardax, Inc. is based in Honolulu, Hawaii.

Larimar Therapeutics Company Profile

Larimar Therapeutics, Inc., a clinical-stage biotechnology company, focuses on developing treatments for rare diseases. The company's lead product candidate is CTI-1601, which is in Phase 1 clinical trial for the treatment of Friedreich's ataxia, a rare and progressive genetic disease. Larimar Therapeutics, Inc. is headquartered in Bala Cynwyd, Pennsylvania.

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