Contrasting Kazia Therapeutics (NASDAQ:KZIA) and Ensysce Biosciences (NASDAQ:ENSC)

Kazia Therapeutics (NASDAQ:KZIA) and Ensysce Biosciences (NASDAQ:ENSC) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Profitability

This table compares Kazia Therapeutics and Ensysce Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kazia Therapeutics	N/A	N/A	N/A
Ensysce Biosciences	-179.26%	-292.81%	-158.83%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Kazia Therapeutics and Ensysce Biosciences, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kazia Therapeutics	0	0	2	0	3.00
Ensysce Biosciences	0	0	0	0	0.00

Kazia Therapeutics currently has a consensus target price of $11.50, suggesting a potential upside of 1,343.64%. Given Kazia Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Kazia Therapeutics is more favorable than Ensysce Biosciences.

Insider & Institutional Ownership

30.9% of Kazia Therapeutics shares are owned by institutional investors. Comparatively, 5.6% of Ensysce Biosciences shares are owned by institutional investors. 1.0% of Kazia Therapeutics shares are owned by insiders. Comparatively, 7.9% of Ensysce Biosciences shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Kazia Therapeutics has a beta of 2.28, meaning that its share price is 128% more volatile than the S&P 500. Comparatively, Ensysce Biosciences has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Valuation and Earnings

This table compares Kazia Therapeutics and Ensysce Biosciences”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kazia Therapeutics	$2.31 million	1.74	-$17.56 million	N/A	N/A
Ensysce Biosciences	$2.23 million	1.58	-$10.61 million	($13.39)	-0.19

Ensysce Biosciences has lower revenue, but higher earnings than Kazia Therapeutics.

Summary

Kazia Therapeutics beats Ensysce Biosciences on 10 of the 12 factors compared between the two stocks.

About Kazia Therapeutics

Kazia Therapeutics Limited operates as an oncology-focused biotechnology company. The company’s lead development candidate is Paxalisib, a small molecule, brain-penetrant inhibitor of the PI3K/AKT/mTOR pathway, which is developed as a potential therapy for glioblastoma. It also develops EVT801, a small-molecule selective inhibitor of vascular endothelial growth factor receptor 3. The company was formerly known as Novogen Limited and changed its name to Kazia Therapeutics Limited in November 2017. Kazia Therapeutics Limited was incorporated in 1994 and is based in Sydney, Australia.

About Ensysce Biosciences

Ensysce Biosciences, Inc., a clinical-stage pharmaceutical company, engages in developing various prescription drugs for severe pain relief in opioid misuse, abuse, and overdose in the United States. It develops products using Trypsin Activated Abuse Protection (TAAP) platform, an abuse-resistant opioid prodrug technology; and Multi-Pill Abuse Resistance (MPAR) platform, an over-dose protection opioid prodrug technology. The company is developing PF614, a TAAP oxycodone prodrug candidate for the treatment of acute or chronic pain; and PF614-MPAR, a combination product of PF614 and nafamostat for overdose protection against excessive oral ingestion, as well as an oral and inhalation drug product of nafamostat for use against coronaviral infections and other pulmonary diseases, such as cystic fibrosis. It is also developing PF614, an extended-release oxycodone-derivative that releases clinically effective oxycodone; PF329 for pain with abuse protection; PF8001 and PF8026 are extended and immediate-release prodrugs of amphetamine for ADHD; and PF9001 to treat Opioid use disorder. The company was founded in 2003 and is based in La Jolla, California.