Critical Review: Leap Therapeutics (NASDAQ:LPTX) and Generex Biotechnology (OTCMKTS:GNBT)

Leap Therapeutics (NASDAQ:LPTX) and Generex Biotechnology (OTCMKTS:GNBT) are both small-cap manufacturing companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Leap Therapeutics and Generex Biotechnology’s 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%
Generex Biotechnology	N/A	N/A	N/A

Risk & Volatility

Leap Therapeutics has a beta of -0.06, suggesting that its share price is 106% less volatile than the S&P 500. Comparatively, Generex Biotechnology has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500.

Valuation and Earnings

This table compares Leap Therapeutics and Generex Biotechnology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leap Therapeutics	N/A	N/A	-$67.56 million	($1.22)	-1.68
Generex Biotechnology	$2.66 million	0.00	-$33.33 million	N/A	N/A

Generex Biotechnology has higher revenue and earnings than Leap Therapeutics.

Institutional and Insider Ownership

30.5% of Leap Therapeutics shares are owned by institutional investors. 4.3% of Leap Therapeutics shares are owned by insiders. Comparatively, 35.2% of Generex Biotechnology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Leap Therapeutics and Generex Biotechnology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leap Therapeutics	1	0	0	0	1.00
Generex Biotechnology	0	0	0	0	0.00

Given Generex Biotechnology’s higher probable upside, analysts plainly believe Generex Biotechnology is more favorable than Leap Therapeutics.

Summary

Generex Biotechnology beats Leap Therapeutics on 6 of the 9 factors compared between the two stocks.

About Leap Therapeutics

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.

About Generex Biotechnology

Generex Biotechnology Corporation, through its subsidiaries, engages in the administration of formulations of large molecule drugs to the oral cavity using a hand-held aerosol applicator in Canada and the United States. It offers Generex Oral-lyn, an oral insulin product. The company is also developing AE37, a synthetic peptide vaccine, which has completed Phase IIb clinical trial to stimulate a potent and specific immune response against tumors expressing the HER-2/neu oncogene in patients with breast cancer and prostate cancer. In addition, it develops, manufactures, and distributes rapid point-of-care in-vitro medical diagnostics for infectious diseases, such as human immunodeficiency virus, tuberculosis, malaria, hepatitis B, hepatitis C, syphilis, and others; and test kits and cassettes for testing infectious diseases, as well as Excellagen, a wound conforming gel. Further, the company is developing immunotherapeutic products and vaccines; and extracellular matrix hydrogel solution, a tissue engineered therapy for the treatment of Ulcerative Colitis. Additionally, it manufactures and sells foot and ankle surgical kits that include plates, screws, and tools; and distributes surgical supplies, orthopedic implants, artificial joints, and biologics, medical devices, and regenerative medicine products. It also serves as the general partner of the Management Services Organization. Generex Biotechnology Corporation was founded in 1983 and is headquartered in Miramar, Florida. On April 23, 2022, an involuntary petition for liquidation under Chapter 7 was filed against Generex Biotechnology Corporation in the U.S. Bankruptcy Court for the Southern District of Florida. On June 6, 2022, the involuntary petition was approved by the Court.