Critical Survey: Larimar Therapeutics (NASDAQ:LRMR) versus Kazia Therapeutics (NASDAQ:KZIA)

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

Risk & Volatility

Kazia Therapeutics has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500. Comparatively, Larimar Therapeutics has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kazia Therapeutics	N/A	N/A	N/A
Larimar Therapeutics	N/A	-35.69%	-32.21%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Kazia Therapeutics and Larimar Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kazia Therapeutics	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 158.90%. Given Larimar Therapeutics’ higher probable upside, analysts plainly believe Larimar Therapeutics is more favorable than Kazia Therapeutics.

Valuation & Earnings

This table compares Kazia Therapeutics 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
Kazia Therapeutics	$20,000.00	177.14	-$13.78 million	N/A	N/A
Larimar Therapeutics	N/A	N/A	-$36.95 million	($0.97)	-8.49

Kazia Therapeutics has higher revenue and earnings than Larimar Therapeutics.

Institutional and Insider Ownership

30.9% of Kazia Therapeutics shares are held by institutional investors. Comparatively, 91.9% of Larimar Therapeutics shares are held by institutional investors. 1.0% of Kazia Therapeutics shares are held by company insiders. Comparatively, 4.3% of Larimar Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Kazia Therapeutics beats Larimar Therapeutics on 5 of the 9 factors compared between the two stocks.

About Kazia Therapeutics

Kazia Therapeutics Limited operates as a biotechnology company, develops anti-cancer drugs. Its lead development candidate is Paxalisib, a small molecule, brain-penetrant inhibitor of the PI3K/AKT/mTOR pathway, which is developed as a potential therapy for glioblastoma, diffuse intrinsic pontine glioma/advanced solid tumors, atypical teratoid rhabdoid tumor, brain metastases, triple negative breast cancer, and primary central nervous system lymphoma. It is also developing EVT801, a small molecule targeted therapeutic vascular endothelial growth factor receptor 3 inhibitor. The company was formerly known as Novogen Limited and changed its name to Kazia Therapeutics Limited in November 2017. The company was incorporated in 1994 and is based in Sydney, Australia.

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.