Rhythm Pharmaceuticals (NASDAQ:RYTM – Get Free Report) and Pharming Group (NASDAQ:PHAR – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.
Volatility & Risk
Rhythm Pharmaceuticals has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500. Comparatively, Pharming Group has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500.
Insider & Institutional Ownership
0.0% of Pharming Group shares are held by institutional investors. 5.9% of Rhythm Pharmaceuticals shares are held by company insiders. Comparatively, 2.1% of Pharming Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rhythm Pharmaceuticals | $189.76 million | 35.23 | -$196.54 million | ($3.11) | -31.37 |
| Pharming Group | $376.13 million | 2.00 | $2.85 million | $0.12 | 88.41 |
Pharming Group has higher revenue and earnings than Rhythm Pharmaceuticals. Rhythm Pharmaceuticals is trading at a lower price-to-earnings ratio than Pharming Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Rhythm Pharmaceuticals and Pharming Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rhythm Pharmaceuticals | -85.59% | -159.87% | -44.00% |
| Pharming Group | 2.51% | 3.40% | 1.90% |
Analyst Ratings
This is a summary of current ratings and price targets for Rhythm Pharmaceuticals and Pharming Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rhythm Pharmaceuticals | 1 | 3 | 17 | 0 | 2.76 |
| Pharming Group | 2 | 0 | 3 | 0 | 2.20 |
Rhythm Pharmaceuticals currently has a consensus target price of $140.67, suggesting a potential upside of 44.18%. Pharming Group has a consensus target price of $38.67, suggesting a potential upside of 264.47%. Given Pharming Group’s higher possible upside, analysts plainly believe Pharming Group is more favorable than Rhythm Pharmaceuticals.
Summary
Pharming Group beats Rhythm Pharmaceuticals on 9 of the 14 factors compared between the two stocks.
About Rhythm Pharmaceuticals
Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the rare neuroendocrine diseases. The company's lead product candidate is IMCIVREE (setmelanotide), a rare melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, and Bardet-Biedl and Alström syndrome. It is in Phase 3 clinical trials for treating POMC or LEPR heterozygous deficiency obesities, steroid receptor coactivator 1 deficiency obesity, SH2B1 deficiency obesity, MC4 receptor deficiency obesity, and other MC4R disorders. The company has licensing agreements with LG Chem, Ltd; Ipsen Pharma S.A.S; Camurus; RareStone Group Ltd.; and LG Chem, Ltd. The company was formerly known as Rhythm Metabolic, Inc. and changed its name to Rhythm Pharmaceuticals, Inc. in October 2015. Rhythm Pharmaceuticals, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.
About Pharming Group
Pharming Group N.V., a biopharmaceutical company, develops and commercializes protein replacement therapies and precision medicines for the treatment of rare diseases in the United States, Europe, and internationally. The company offers RUCONEST, a recombinant C1 esterase inhibitor for the treatment of acute attacks in adult and adolescent patients with acute hereditary angioedema (HAE); and Joenja (leniolisib), an oral small molecule PI3K? inhibitor for the treatment of activated phosphoinositide 3-kinase delta syndrome. It also develops OTL-105, an investigational ex-vivo autologous hematopoietic stem cell gene therapy for the treatment of HAE. The company has a development collaboration and license agreement with Novartis; and a strategic collaboration agreement with Orchard Therapeutics plc for research, development, manufacturing, and commercialization of OTL-105. Pharming Group N.V. was incorporated in 1988 and is headquartered in Leiden, the Netherlands.
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