Contrasting Harrow (NASDAQ:HROW) & Tarsus Pharmaceuticals (NASDAQ:TARS)

Harrow (NASDAQ:HROWGet Free Report) and Tarsus Pharmaceuticals (NASDAQ:TARSGet Free Report) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Institutional and Insider Ownership

72.8% of Harrow shares are held by institutional investors. Comparatively, 90.0% of Tarsus Pharmaceuticals shares are held by institutional investors. 12.8% of Harrow shares are held by insiders. Comparatively, 9.6% of Tarsus Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Harrow and Tarsus Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harrow 2 1 8 0 2.55
Tarsus Pharmaceuticals 1 2 4 3 2.90

Harrow currently has a consensus price target of $69.43, indicating a potential upside of 80.15%. Tarsus Pharmaceuticals has a consensus price target of $90.50, indicating a potential downside of 0.31%. Given Harrow’s higher probable upside, equities analysts plainly believe Harrow is more favorable than Tarsus Pharmaceuticals.

Risk and Volatility

Harrow has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Tarsus Pharmaceuticals has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Valuation & Earnings

This table compares Harrow and Tarsus Pharmaceuticals”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Harrow $272.30 million 5.31 -$5.14 million ($1.00) -38.54
Tarsus Pharmaceuticals $451.36 million 8.83 -$66.42 million ($1.09) -83.28

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

Profitability

This table compares Harrow and Tarsus Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Harrow -13.51% -38.00% -3.37%
Tarsus Pharmaceuticals -7.67% -13.53% -8.12%

Summary

Tarsus Pharmaceuticals beats Harrow on 8 of the 15 factors compared between the two stocks.

About Harrow

(Get Free Report)

Harrow, Inc. operates as an ophthalmic-focused healthcare company. The company owns ImprimisRx, an ophthalmology outsourcing and pharmaceutical compounding business. The company was formerly known as Imprimis Pharmaceuticals, Inc. and changed its name to Harrow Health, Inc. in December 2018. Harrow Health, Inc. was incorporated in 2006 and is headquartered in Nashville, Tennessee.

About Tarsus Pharmaceuticals

(Get Free Report)

Tarsus Pharmaceuticals, Inc., a commercial stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutic candidates for eye care in the United States. The company's lead product candidate is XDEMVY, a novel therapeutic for the treatment of blepharitis caused by the infestation of Demodex mites, as well as to treat meibomian gland disease. It is developing TP-04 for the treatment of rosacea; and TP-05 for Lyme prophylaxis and community malaria reduction. In addition, the company develops lotilaner to address diseases across therapeutic categories in human medicine, including eye care, dermatology, and other infectious disease prevention. Tarsus Pharmaceuticals, Inc. was incorporated in 2016 and is headquartered in Irvine, California.

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