Critical Analysis: Javelin Mortgage Investment (JMI) and DelMar Pharmaceuticals (DMPI)

DelMar Pharmaceuticals (NASDAQ: DMPI) and Javelin Mortgage Investment (NYSE:JMI) are both small-cap financials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for DelMar Pharmaceuticals and Javelin Mortgage Investment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DelMar Pharmaceuticals 0 1 3 0 2.75
Javelin Mortgage Investment 0 0 0 0 N/A

DelMar Pharmaceuticals presently has a consensus target price of $13.00, indicating a potential upside of 1,377.27%. Given DelMar Pharmaceuticals’ higher probable upside, equities research analysts plainly believe DelMar Pharmaceuticals is more favorable than Javelin Mortgage Investment.

Profitability

This table compares DelMar Pharmaceuticals and Javelin Mortgage Investment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DelMar Pharmaceuticals N/A N/A -119.62%
Javelin Mortgage Investment 59.64% 17.94% 2.30%

Insider and Institutional Ownership

16.9% of DelMar Pharmaceuticals shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares DelMar Pharmaceuticals and Javelin Mortgage Investment’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DelMar Pharmaceuticals N/A N/A -$8.08 million ($0.68) -1.29
Javelin Mortgage Investment N/A N/A N/A ($0.03) -239.33

Javelin Mortgage Investment is trading at a lower price-to-earnings ratio than DelMar Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

DelMar Pharmaceuticals has a beta of 1227.92, indicating that its stock price is 122,692% more volatile than the S&P 500. Comparatively, Javelin Mortgage Investment has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Dividends

Javelin Mortgage Investment pays an annual dividend of $1.08 per share and has a dividend yield of 15.0%. DelMar Pharmaceuticals does not pay a dividend. Javelin Mortgage Investment pays out -3,600.0% of its earnings in the form of a dividend.

Summary

Javelin Mortgage Investment beats DelMar Pharmaceuticals on 6 of the 10 factors compared between the two stocks.

DelMar Pharmaceuticals Company Profile

DelMar Pharmaceuticals, Inc. is a clinical-stage drug development company. The Company focuses on the treatment of cancer. The Company is engaged in conducting clinical trials in the United States with its product candidate, VAL-083, as a treatment for glioblastoma multiforme (GBM), a form of brain cancer. VAL-083 is being evaluated in a Phase II clinical trial for the treatment of refractory GBM. In addition to its clinical development activities in the United States, the Company has obtained certain commercial rights to VAL-083 in China where it is approved as a chemotherapy for the treatment of chronic myelogenous leukemia (CML) and lung cancer. Its drug discovery research focuses on identifying validated clinical and commercial-stage compounds, and establishing a scientific rationale for development in orphan drug indications. VAL-083 is an alkylating agent, which crosses the blood-brain-barrier (BBB).

Javelin Mortgage Investment Company Profile

JAVELIN Mortgage Investment Corp. is a real estate investment trust (REIT). The Company invests primarily in fixed rate and hybrid adjustable rate mortgage backed securities. The Company may invest in collateralized commercial mortgage backed securities and other mortgage related investments, including mortgage loans, mortgage related derivatives and mortgage servicing rights. It invests in unsecured notes and bonds issued by government sponsored enterprises (GSEs), the United States Treasuries and money market instruments. The Company is managed by ARMOUR Capital Management LP.

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