Head-To-Head Survey: Lexicon Pharmaceuticals (NASDAQ:LXRX) vs. Cyclacel Pharmaceuticals (NASDAQ:CYCC)

Cyclacel Pharmaceuticals (NASDAQ:CYCC) and Lexicon Pharmaceuticals (NASDAQ:LXRX) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Valuation and Earnings

This table compares Cyclacel Pharmaceuticals and Lexicon Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cyclacel Pharmaceuticals	$420,000.00	6.47	-$22.56 million	($27.22)	-0.08
Lexicon Pharmaceuticals	$1.20 million	338.58	-$177.12 million	($0.80)	-2.06

Cyclacel Pharmaceuticals has higher earnings, but lower revenue than Lexicon Pharmaceuticals. Lexicon Pharmaceuticals is trading at a lower price-to-earnings ratio than Cyclacel Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Cyclacel Pharmaceuticals and Lexicon Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cyclacel Pharmaceuticals	0	1	1	0	2.50
Lexicon Pharmaceuticals	0	1	0	0	2.00

Cyclacel Pharmaceuticals currently has a consensus price target of $21.00, suggesting a potential upside of 999.48%. Lexicon Pharmaceuticals has a consensus price target of $5.00, suggesting a potential upside of 201.20%. Given Cyclacel Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Cyclacel Pharmaceuticals is more favorable than Lexicon Pharmaceuticals.

Profitability

This table compares Cyclacel Pharmaceuticals and Lexicon Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cyclacel Pharmaceuticals	N/A	-448.19%	-151.29%
Lexicon Pharmaceuticals	-14,573.20%	-138.54%	-71.29%

Insider and Institutional Ownership

23.6% of Cyclacel Pharmaceuticals shares are held by institutional investors. Comparatively, 74.7% of Lexicon Pharmaceuticals shares are held by institutional investors. 8.5% of Cyclacel Pharmaceuticals shares are held by company insiders. Comparatively, 4.5% of Lexicon Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Cyclacel Pharmaceuticals has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Lexicon Pharmaceuticals has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Summary

Lexicon Pharmaceuticals beats Cyclacel Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

About Cyclacel Pharmaceuticals

Cyclacel Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops medicines for the treatment of cancer and other proliferative diseases. The company's lead product includes fadraciclib, a cyclin dependent kinase Inhibitors (CDK) that is in Phase 1/2 clinical trial for the treatment of solid tumors, as well as in combination with venetoclax to treat relapsed or refractory chronic lymphocytic leukemia; and Plogosertib, a polo-like kinase inhibitor program, which is in Phase 1/2 clinical trial for the treatment of advanced leukemias and solid tumors. It has a clinical collaboration agreement with the University of Texas MD Anderson Cancer Center to clinically evaluate the safety and efficacy of three cyclacel medicines in patients with hematological malignancies, including chronic lymphocytic leukemias, acute myeloid leukemias, myelodysplastic syndromes, and other advanced leukemias. The company was founded in 1996 and is headquartered in Berkeley Heights, New Jersey.

About Lexicon Pharmaceuticals

Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of pharmaceutical products. Its orally-delivered small molecule drug candidates under development comprise Sotagliflozin that completed Phase III clinical trials for the for the treatment of heart failure and type 1 diabetes; and LX9211, which is in Phase II clinical development for the treatment of neuropathic pain and LX2761, which is in Phase I clinical development for gastrointestinal tract. Lexicon Pharmaceuticals, Inc. has strategic collaboration and license agreements with Bristol-Myers Squibb Company and Genentech, Inc. The company was incorporated in 1995 and is headquartered in The Woodlands, Texas.