Head-To-Head Contrast: Leap Therapeutics (NASDAQ:LPTX) versus Nemus Bioscience (OTCMKTS:NMUS)

Leap Therapeutics (NASDAQ:LPTX) and Nemus Bioscience (OTCMKTS:NMUS) are both small-cap manufacturing companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Risk and Volatility

Leap Therapeutics has a beta of -0.06, suggesting that its stock price is 106% less volatile than the S&P 500. Comparatively, Nemus Bioscience has a beta of -0.04, suggesting that its stock price is 104% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Leap Therapeutics and Nemus Bioscience, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leap Therapeutics	1	0	0	0	1.00
Nemus Bioscience	0	0	0	0	0.00

Given Nemus Bioscience’s higher possible upside, analysts plainly believe Nemus Bioscience is more favorable than Leap Therapeutics.

Earnings and Valuation

This table compares Leap Therapeutics and Nemus Bioscience”s gross revenue, earnings per share 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
Nemus Bioscience	N/A	N/A	-$19.19 million	N/A	N/A

Insider and Institutional Ownership

30.5% of Leap Therapeutics shares are owned by institutional investors. 4.3% of Leap Therapeutics shares are owned by insiders. Comparatively, 2.7% of Nemus Bioscience shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Leap Therapeutics and Nemus Bioscience’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%
Nemus Bioscience	N/A	N/A	-924.42%

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 Nemus Bioscience

Nemus Bioscience, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of cannabinoid-based therapeutics. The company's product candidates in preclinical stage include NB1111 for the treatment of glaucoma; NB1222 used for treating chemotherapy induced nausea and vomiting; and NB3111 for the treatment of methicillin-resistant staphylococcus aureus. Its products under research comprise NB2111 for use in treating chemotherapy induced peripheral neuropathy; and NB2222 for the treatment of uveitis, dry eye syndrome, macular degeneration, and diabetic retinopathy. Nemus Bioscience, Inc. has a license agreement with the University of Mississippi to research, develop, and commercialize products for the treatment of infectious diseases. The company was founded in 2012 and is headquartered in Costa Mesa, California.