Leap Therapeutics (LPTX) versus The Competition Critical Analysis

Leap Therapeutics (NASDAQ:LPTX) is one of 454 publicly-traded companies in the “Pharmaceutical Preparations” industry, but how does it weigh in compared to its competitors? We will compare Leap Therapeutics to related businesses based on the strength of its institutional ownership, valuation, earnings, risk, profitability, dividends and analyst recommendations.

Profitability

This table compares Leap Therapeutics and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leap Therapeutics	N/A	-247.44%	-146.51%
Leap Therapeutics Competitors	-2,626.20%	-359.54%	-43.35%

Institutional & Insider Ownership

30.5% of Leap Therapeutics shares are owned by institutional investors. Comparatively, 39.3% of shares of all “Pharmaceutical Preparations” companies are owned by institutional investors. 4.3% of Leap Therapeutics shares are owned by company insiders. Comparatively, 14.1% of shares of all “Pharmaceutical Preparations” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Leap Therapeutics and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Leap Therapeutics	N/A	-$67.56 million	-1.68
Leap Therapeutics Competitors	$434.13 million	-$68.27 million	-10.42

Leap Therapeutics’ competitors have higher revenue, but lower earnings than Leap Therapeutics. Leap Therapeutics is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Leap Therapeutics and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leap Therapeutics	1	0	0	0	1.00
Leap Therapeutics Competitors	4834	9976	16022	375	2.38

As a group, “Pharmaceutical Preparations” companies have a potential upside of 120.33%. Given Leap Therapeutics’ competitors stronger consensus rating and higher possible upside, analysts clearly believe Leap Therapeutics has less favorable growth aspects than its competitors.

Risk and Volatility

Leap Therapeutics has a beta of -0.06, suggesting that its share price is 106% less volatile than the S&P 500. Comparatively, Leap Therapeutics’ competitors have a beta of 11.28, suggesting that their average share price is 1,028% more volatile than the S&P 500.

Summary

Leap Therapeutics competitors beat Leap Therapeutics on 9 of the 13 factors compared.

Leap Therapeutics Company Profile

Leap Therapeutics, Inc., a biopharmaceutical company, acquires and develops therapies for the treatment of cancer. Its lead clinical stage programs include DKN-01, a monoclonal antibody that inhibits Dickkopf-related protein 1, which is in multiple ongoing clinical trials for treating esophagogastric, hepatobiliary, gynecologic, and prostate cancers. Leap Therapeutics, Inc. has an option and license agreement with 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.