Reviewing Praxis Precision Medicines (NASDAQ:PRAX) & Lantern Pharma (NASDAQ:LTRN)

Lantern Pharma (NASDAQ:LTRN) and Praxis Precision Medicines (NASDAQ:PRAX) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Risk & Volatility

Lantern Pharma has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, Praxis Precision Medicines has a beta of 2.85, suggesting that its stock price is 185% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Lantern Pharma and Praxis Precision Medicines, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lantern Pharma	1	0	1	0	2.00
Praxis Precision Medicines	2	0	13	3	2.94

Lantern Pharma currently has a consensus price target of $25.00, suggesting a potential upside of 666.87%. Praxis Precision Medicines has a consensus price target of $436.67, suggesting a potential upside of 55.49%. Given Lantern Pharma’s higher possible upside, analysts plainly believe Lantern Pharma is more favorable than Praxis Precision Medicines.

Institutional & Insider Ownership

28.6% of Lantern Pharma shares are owned by institutional investors. Comparatively, 67.8% of Praxis Precision Medicines shares are owned by institutional investors. 8.5% of Lantern Pharma shares are owned by company insiders. Comparatively, 2.7% of Praxis Precision Medicines shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Lantern Pharma and Praxis Precision Medicines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lantern Pharma	N/A	-125.98%	-97.38%
Praxis Precision Medicines	N/A	-66.90%	-60.30%

Valuation and Earnings

This table compares Lantern Pharma and Praxis Precision Medicines”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lantern Pharma	N/A	N/A	-$20.78 million	($1.75)	-1.86
Praxis Precision Medicines	$8.55 million	827.38	-$182.82 million	($12.90)	-21.77

Lantern Pharma has higher earnings, but lower revenue than Praxis Precision Medicines. Praxis Precision Medicines is trading at a lower price-to-earnings ratio than Lantern Pharma, indicating that it is currently the more affordable of the two stocks.

Summary

Praxis Precision Medicines beats Lantern Pharma on 8 of the 13 factors compared between the two stocks.

About Lantern Pharma

Lantern Pharma Inc., a clinical stage biotechnology company, focuses on artificial intelligence, machine learning, and genomic data to streamline the drug development process. Its product pipeline comprises LP-300, which is in phase 2 clinical trial in combination therapy for never-smokers with non-small cell lung cancer adenocarcinoma; LP-184, which is in phase 1 clinical trial for the treatment of solid tumor, such as pancreatic, breast, bladder, and lung cancers, and glioblastoma and other central nervous system cancers; and LP-284, which is in phase 1 clinical trial for the treatment of non-Hodgkin's lymphomas, including mantle cell lymphoma and double hit lymphoma. The company develops STAR-001, which is in preclinical development for the treatment of glioblastoma, brain metastases, atypical teratoid rhabdoid tumors, and pediatric rare disease designation. In addition, it provides ADC program, an antibody drug conjugate therapeutic approach for cancer treatment. Further, the company's artificial intelligence platform RADR uses big data analytics and machine learning for combining molecular data. Lantern Pharma Inc. has a strategic AI-driven collaboration with Oregon Therapeutics to optimize the development of its first-in-class protein disulfide isomerase inhibitor drug candidate XCE853 in novel and targeted cancer indications. The company was incorporated in 2013 and is headquartered in Dallas, Texas.

About Praxis Precision Medicines

Praxis Precision Medicines, Inc., a clinical-stage biopharmaceutical company, engages in the development of therapies for central nervous system disorders characterized by neuronal excitation-inhibition imbalance. It is developing ulixacaltamide, a small molecule inhibitor of T-type calcium channels that is in Phase III clinical trial for the treatment of essential tremor; PRAX-562 for the treatment of pediatric patients with developmental and epileptic encephalopathies (DEE); and PRAX-628 to treat focal epilepsy. The company also develops PRAX-222 for the treatment of pediatric patients with early-onset SCN2A-DEE; PRAX-020 to treat KCNT1 related epilepsies; PRAX-080 for the treatment of PCDH19; and PRAX-090 and PRAX-100 for SYNGAP1 and SCN2A-LoF. It has a license agreement with RogCon Inc.; a research collaboration and license agreement with Ionis Pharmaceuticals, Inc.; a strategic collaboration and license agreement with UCB Biopharma SRL; and collaboration with The Florey Institute to develop three novel ASOs. The company was incorporated in 2015 and is based in Boston, Massachusetts.