Vanda Pharmaceuticals (NASDAQ:VNDA – Get Free Report) and Harmony Biosciences (NASDAQ:HRMY – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.
Volatility and Risk
Vanda Pharmaceuticals has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Harmony Biosciences has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
Profitability
This table compares Vanda Pharmaceuticals and Harmony Biosciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vanda Pharmaceuticals | -127.41% | -49.81% | -33.29% |
| Harmony Biosciences | 18.88% | 20.06% | 14.15% |
Insider & Institutional Ownership
Analyst Ratings
This is a breakdown of recent ratings for Vanda Pharmaceuticals and Harmony Biosciences, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vanda Pharmaceuticals | 1 | 2 | 6 | 0 | 2.56 |
| Harmony Biosciences | 1 | 5 | 5 | 0 | 2.36 |
Vanda Pharmaceuticals presently has a consensus price target of $13.08, suggesting a potential upside of 159.08%. Harmony Biosciences has a consensus price target of $47.11, suggesting a potential upside of 14.18%. Given Vanda Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Vanda Pharmaceuticals is more favorable than Harmony Biosciences.
Valuation and Earnings
This table compares Vanda Pharmaceuticals and Harmony Biosciences”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vanda Pharmaceuticals | $216.10 million | 1.41 | -$220.47 million | ($4.63) | -1.09 |
| Harmony Biosciences | $868.45 million | 2.77 | $158.69 million | $3.08 | 13.40 |
Harmony Biosciences has higher revenue and earnings than Vanda Pharmaceuticals. Vanda Pharmaceuticals 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 Vanda Pharmaceuticals on 10 of the 14 factors compared between the two stocks.
About Vanda Pharmaceuticals
Vanda Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of therapies to address high unmet medical needs worldwide. The company’s marketed products include HETLIOZ to treat non-24-hour sleep-wake disorders; and Fanapt oral tablets for the treatment of schizophrenia. Its pipeline products include HETLIOZ (tasimelteon) to treat jet lag disorder, insomnia, delayed sleep phase disorder, sleep disturbances in autism spectrum disorder, and pediatric Non-24; Fanapt (iloperidone) for the treatment of bipolar I disorder and Parkinson’s disease psychosis, as well as a long acting injectable (LAI) formulation to treat schizophrenia; and Tradipitant (VLY-686), a small molecule neurokinin-1 receptor (NK-1R) antagonist to treat gastroparesis, motion sickness, atopic dermatitis, and COVID-19 pneumonia. The company’s pipeline products also include VTR-297, a small molecule histone deacetylase inhibitor to treat hematologic malignancies and with potential use as a treatment for various oncology indications; VQW-765, a small molecule nicotinic acetylcholine receptor partial agonist to treat performance anxiety and psychiatric disorders; VHX-896, an active metabolite of iloperidone; and antisense oligonucleotide molecules. In addition, it offers a portfolio of cystic fibrosis transmembrane conductance regulator activators and inhibitors that include VSJ-110 for the treatment of dry eye and ocular inflammation; and VPO-227 for the treatment of secretory diarrhea disorders comprising cholera. Vanda Pharmaceuticals Inc. was incorporated in 2002 and is headquartered in Washington, the District of Columbia.
About Harmony Biosciences
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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