Analyzing Tarsus Pharmaceuticals (TARS) & Its Rivals

Tarsus Pharmaceuticals (NASDAQ:TARS) is one of 894 public companies in the “Pharmaceuticals” industry, but how does it compare to its peers? We will compare Tarsus Pharmaceuticals to similar businesses based on the strength of its dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Insider and Institutional Ownership

90.0% of Tarsus Pharmaceuticals shares are held by institutional investors. Comparatively, 32.5% of shares of all “Pharmaceuticals” companies are held by institutional investors. 9.6% of Tarsus Pharmaceuticals shares are held by insiders. Comparatively, 14.1% of shares of all “Pharmaceuticals” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tarsus Pharmaceuticals	-102.93%	-24.51%	-12.40%
Tarsus Pharmaceuticals Competitors	-2,393.16%	-220.83%	-16.11%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Tarsus Pharmaceuticals and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tarsus Pharmaceuticals	1	1	7	1	2.80
Tarsus Pharmaceuticals Competitors	7819	13779	25785	1035	2.41

Tarsus Pharmaceuticals presently has a consensus target price of $104.57, indicating a potential upside of 36.23%. As a group, “Pharmaceuticals” companies have a potential upside of 24.26%. Given Tarsus Pharmaceuticals’ stronger consensus rating and higher probable upside, equities analysts plainly believe Tarsus Pharmaceuticals is more favorable than its peers.

Volatility & Risk

Tarsus Pharmaceuticals has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Tarsus Pharmaceuticals’ peers have a beta of -0.05, meaning that their average stock price is 105% less volatile than the S&P 500.

Earnings & Valuation

This table compares Tarsus Pharmaceuticals and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tarsus Pharmaceuticals	$682.20 million	-$66.42 million	-5.05
Tarsus Pharmaceuticals Competitors	$5.38 billion	$3.23 billion	555.01

Tarsus Pharmaceuticals’ peers have higher revenue and earnings than Tarsus Pharmaceuticals. Tarsus Pharmaceuticals is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Tarsus Pharmaceuticals beats its peers on 9 of the 13 factors compared.

Tarsus Pharmaceuticals Company Profile

Tarsus Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing treatments for diseases with significant unmet medical needs, particularly in eye care. The company’s work includes therapies targeting Demodex mites, microscopic parasites associated with certain eye conditions. Its lead product, XDEMVY (lotilaner ophthalmic solution), is an FDA-approved prescription treatment for Demodex blepharitis, an eyelid condition. Tarsus has also evaluated lotilaner-based candidates for other conditions, including ocular rosacea and Lyme disease prevention.