Analyzing Opus Genetics (NASDAQ:IRD) and Harmony Biosciences (NASDAQ:HRMY)

Opus Genetics (NASDAQ:IRDGet Free Report) and Harmony Biosciences (NASDAQ:HRMYGet Free Report) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Risk and Volatility

Opus Genetics has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Harmony Biosciences has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Insider & Institutional Ownership

15.0% of Opus Genetics shares are held by institutional investors. Comparatively, 86.2% of Harmony Biosciences shares are held by institutional investors. 11.7% of Opus Genetics shares are held by company insiders. Comparatively, 11.0% of Harmony Biosciences shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Opus Genetics and Harmony Biosciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Opus Genetics -892.36% -338.88% -191.21%
Harmony Biosciences 16.20% 17.19% 11.99%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Opus Genetics 2 0 12 1 2.80
Harmony Biosciences 1 6 4 0 2.27

Opus Genetics presently has a consensus price target of $10.18, indicating a potential upside of 148.94%. Harmony Biosciences has a consensus price target of $40.89, indicating a potential upside of 35.89%. Given Opus Genetics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Opus Genetics is more favorable than Harmony Biosciences.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Opus Genetics $14.20 million 23.45 -$49.59 million ($1.33) -3.08
Harmony Biosciences $899.11 million 1.94 $158.69 million $2.48 12.13

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

Summary

Harmony Biosciences beats Opus Genetics on 9 of the 15 factors compared between the two stocks.

About Opus Genetics

(Get Free Report)

Opus Genetics Inc. is a clinical-stage ophthalmic biopharmaceutical company, focuses on developing and commercializing therapies for the treatment of unmet needs of patients with refractive and retinal eye disorders. Opus Genetics Inc., formerly known as Ocuphire Pharma Inc., is based in Farmington Hills, Michigan.

About Harmony Biosciences

(Get Free Report)

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.

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