Head-To-Head Comparison: Harrow (NASDAQ:HROW) versus Tarsus Pharmaceuticals (NASDAQ:TARS)

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

Analyst Recommendations

This is a summary of recent ratings and target prices 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	2	2.78

Harrow presently has a consensus target price of $69.43, suggesting a potential upside of 77.79%. Tarsus Pharmaceuticals has a consensus target price of $90.50, suggesting a potential upside of 9.35%. Given Harrow’s higher probable upside, equities research analysts clearly believe Harrow is more favorable than Tarsus Pharmaceuticals.

Volatility & Risk

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

Insider & Institutional 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

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%

Valuation and 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	5.38	-$5.14 million	($1.00)	-39.05
Tarsus Pharmaceuticals	$451.36 million	8.05	-$66.42 million	($1.09)	-75.93

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.

Summary

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

About Harrow

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

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.