Head-To-Head Review: Eloxx Pharmaceuticals (NASDAQ:ELOX) & Harmony Biosciences (NASDAQ:HRMY)

Harmony Biosciences (NASDAQ:HRMY) and Eloxx Pharmaceuticals (NASDAQ:ELOX) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Risk and Volatility

Harmony Biosciences has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Eloxx Pharmaceuticals has a beta of -1862.26, indicating that its stock price is 186,326% less volatile than the S&P 500.

Insider and Institutional Ownership

86.2% of Harmony Biosciences shares are owned by institutional investors. Comparatively, 2.9% of Eloxx Pharmaceuticals shares are owned by institutional investors. 11.0% of Harmony Biosciences shares are owned by company insiders. Comparatively, 25.9% of Eloxx Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Harmony Biosciences and Eloxx Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmony Biosciences	1	5	5	0	2.36
Eloxx Pharmaceuticals	1	0	2	1	2.75

Harmony Biosciences currently has a consensus target price of $47.11, suggesting a potential upside of 13.19%. Eloxx Pharmaceuticals has a consensus target price of $41.50, suggesting a potential upside of 150.45%. Given Eloxx Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Eloxx Pharmaceuticals is more favorable than Harmony Biosciences.

Valuation & Earnings

This table compares Harmony Biosciences and Eloxx Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmony Biosciences	$868.45 million	2.79	$158.69 million	$3.08	13.51
Eloxx Pharmaceuticals	$6.36 million	10.53	-$5.99 million	($1.54)	-10.76

Harmony Biosciences has higher revenue and earnings than Eloxx Pharmaceuticals. Eloxx Pharmaceuticals is trading at a lower price-to-earnings ratio than Harmony Biosciences, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Harmony Biosciences and Eloxx Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Harmony Biosciences	18.88%	20.06%	14.15%
Eloxx Pharmaceuticals	N/A	N/A	N/A

Summary

Harmony Biosciences beats Eloxx Pharmaceuticals on 10 of the 15 factors compared between the two stocks.

About Harmony Biosciences

Harmony Biosciences Holdings, Inc., a commercial-stage pharmaceutical company, focuses on developing and commercializing therapies for patients with rare and other neurological diseases in the United States. The company offers WAKIX (pitolisant), a molecule with a novel mechanism of action for the treatment of excessive daytime sleepiness in adult patients with narcolepsy. It also offers HBS-102, a melanin-concentrating hormone receptor 1 for MCH neurons. The company was formerly known as Harmony Biosciences II, Inc. and changed its name to Harmony Biosciences Holdings, Inc. in February 2020. Harmony Biosciences Holdings, Inc. was incorporated in 2017 and is headquartered in Plymouth Meeting, Pennsylvania.

About Eloxx Pharmaceuticals

Eloxx Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. It engaged in developing novel small molecule medicines to treat many rare and ultra-rare genetic diseases caused by nonsense mutations. The company’s lead product candidate consists ELX-02, is an optimized aminoglycoside designed to restore full-length functional proteins. It operates primarily in Waltham, MA and Rehovot, Israel. Eloxx Pharmaceuticals Inc., formerly known as Sevion Therapeutics Inc., is based in WALTHAM, United States.