Organon & Co. (NYSE:OGN – Get Free Report) and Tarsus Pharmaceuticals (NASDAQ:TARS – Get Free Report) are both mid-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Organon & Co. and Tarsus Pharmaceuticals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Organon & Co. | 2 | 5 | 0 | 0 | 1.71 |
| Tarsus Pharmaceuticals | 1 | 1 | 7 | 1 | 2.80 |
Organon & Co. currently has a consensus price target of $11.40, suggesting a potential downside of 17.78%. Tarsus Pharmaceuticals has a consensus price target of $104.57, suggesting a potential upside of 52.40%. Given Tarsus Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Tarsus Pharmaceuticals is more favorable than Organon & Co..
Volatility & Risk
Organon & Co. has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500. Comparatively, Tarsus Pharmaceuticals has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.
Earnings and Valuation
This table compares Organon & Co. 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 | |
| Organon & Co. | $6.10 billion | 0.60 | $187.00 million | $0.76 | 18.24 |
| Tarsus Pharmaceuticals | $682.20 million | 4.96 | -$66.42 million | ($15.19) | -4.52 |
Organon & Co. has higher revenue and earnings than Tarsus Pharmaceuticals. Tarsus Pharmaceuticals is trading at a lower price-to-earnings ratio than Organon & Co., indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Organon & Co. and Tarsus Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Organon & Co. | 3.49% | 82.06% | 6.03% |
| Tarsus Pharmaceuticals | -102.93% | -24.51% | -12.40% |
Institutional and Insider Ownership
77.4% of Organon & Co. shares are held by institutional investors. Comparatively, 90.0% of Tarsus Pharmaceuticals shares are held by institutional investors. 1.6% of Organon & Co. shares are held by company insiders. Comparatively, 9.6% of Tarsus Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Organon & Co. beats Tarsus Pharmaceuticals on 8 of the 15 factors compared between the two stocks.
About Organon & Co.
Organon & Co. is a science based global pharmaceutical company, which develops and delivers innovative health solutions through a portfolio of prescription therapies within women’s health, biosimilars and established brands. The company was founded on March 11, 2020, and is headquartered in Jersey City, NJ.
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.
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