Head-To-Head Survey: Larimar Therapeutics (NASDAQ:LRMR) & Gain Therapeutics (NASDAQ:GANX)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gain Therapeutics	1	0	6	0	2.71
Larimar Therapeutics	1	0	8	1	2.90

Gain Therapeutics currently has a consensus target price of $8.67, indicating a potential upside of 275.18%. Larimar Therapeutics has a consensus target price of $16.71, indicating a potential upside of 401.93%. Given Larimar Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Larimar Therapeutics is more favorable than Gain Therapeutics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gain Therapeutics	N/A	-341.32%	-174.09%
Larimar Therapeutics	N/A	-91.83%	-74.60%

Risk and Volatility

Gain Therapeutics has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, Larimar Therapeutics has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Valuation & Earnings

This table compares Gain Therapeutics and Larimar Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gain Therapeutics	$50,000.00	1,776.85	-$20.41 million	($0.61)	-3.79
Larimar Therapeutics	N/A	N/A	-$80.60 million	($1.93)	-1.73

Gain Therapeutics has higher revenue and earnings than Larimar Therapeutics. Gain Therapeutics is trading at a lower price-to-earnings ratio than Larimar Therapeutics, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

12.0% of Gain Therapeutics shares are held by institutional investors. Comparatively, 91.9% of Larimar Therapeutics shares are held by institutional investors. 7.2% of Gain Therapeutics shares are held by insiders. Comparatively, 4.5% of Larimar Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Larimar Therapeutics beats Gain Therapeutics on 9 of the 13 factors compared between the two stocks.

About Gain Therapeutics

Gain Therapeutics, Inc., a biotechnology company, develops novel small molecule therapeutics to treat diseases across various therapeutic areas. Its drug discovery platform Magellan discovers novel allosteric binding sites in a disease; identifies proprietary small molecules that bind these sites to modulate protein function; and treats the underlying cause of the disease. The company's lead drug candidate, GT-02287 for the treatment of GBA1 Parkinson's disease is being evaluated in a Phase I clinical trials. It also has various small molecule drug candidates, which are in the discovery, research, and preclinical stages for the treatment of Dementia with Lewy Bodies, Alzhiemer's Disease, Gaucher, GM1 Gangliosidosis, Krabbe Disease, Alpha1-Antitrypsun deficiency, and solid tumors. Gain Therapeutics, Inc. was founded in 2017 and is headquartered in Bethesda, Maryland.

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.