Critical Comparison: Harrow (NASDAQ:HROW) and Supernus Pharmaceuticals (NASDAQ:SUPN)

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

Earnings and Valuation

This table compares Supernus Pharmaceuticals and Harrow”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Supernus Pharmaceuticals	$718.95 million	3.43	-$38.55 million	($1.92)	-22.07
Harrow	$272.30 million	4.20	-$5.14 million	($1.00)	-30.48

Harrow has lower revenue, but higher earnings than Supernus Pharmaceuticals. Harrow is trading at a lower price-to-earnings ratio than Supernus Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

72.8% of Harrow shares are owned by institutional investors. 8.5% of Supernus Pharmaceuticals shares are owned by company insiders. Comparatively, 12.8% of Harrow shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Supernus Pharmaceuticals and Harrow’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Supernus Pharmaceuticals	-13.23%	11.13%	8.10%
Harrow	-13.51%	-38.00%	-3.37%

Analyst Recommendations

This is a breakdown of current recommendations for Supernus Pharmaceuticals and Harrow, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Supernus Pharmaceuticals	1	2	4	0	2.43
Harrow	1	2	7	0	2.60

Supernus Pharmaceuticals presently has a consensus target price of $62.83, indicating a potential upside of 48.26%. Harrow has a consensus target price of $66.17, indicating a potential upside of 117.08%. Given Harrow’s stronger consensus rating and higher probable upside, analysts plainly believe Harrow is more favorable than Supernus Pharmaceuticals.

Risk and Volatility

Supernus Pharmaceuticals has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Harrow has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Summary

Harrow beats Supernus Pharmaceuticals on 8 of the 14 factors compared between the two stocks.

About Supernus Pharmaceuticals

Supernus Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system (CNS) diseases in the United States. The company's commercial products are Trokendi XR, an extended release topiramate product indicated for the treatment of epilepsy, as well as for the prophylaxis of migraine headache; and Oxtellar XR, an extended release oxcarbazepine for the monotherapy treatment of partial onset seizures in adults and children between 6 to 17 years of age. It also offers comprise Qelbree, a novel non-stimulant indicated for the treatment of attention-deficit hyperactivity disorder (ADHD) in adults and pediatric patients 6 years and older; APOKYN for the acute intermittent treatment of hypomobility or off episodes in patients with advanced Parkinson's Disease (PD); XADAGO for treating levodopa/carbidopa in patients with PD experiencing off episodes; MYOBLOC, a Type B toxin product indicated for the treatment of cervical dystonia and sialorrhea in adults; GOCOVRI for the treatment of dyskinesia in patients with PD; and Osmolex ER for the treatment of Parkinson's disease and drug-induced extrapyramidal reaction in adult patients. In addition, the company's product candidates include SPN-830, a late-stage drug/device combination product candidate for the treatment of off episodes in PD patients; SPN-817, a novel first-in-class selective acetylcholinesterase inhibitor, which is in Phase II clinical trials for the treatment of epilepsy; SPN-820, a product candidate in Phase II clinical trials for treating resistant depression; SPN-443, a preclinical product for the treatment of ADHD/CNS; and SPN-446 for narcolepsy and SPN-448 for the treatment of CNS which is in discovery stage. It markets and sells its products through pharmaceutical wholesalers, specialty pharmacies, and distributors. Supernus Pharmaceuticals, Inc. was incorporated in 2005 and is headquartered in Rockville, Maryland.

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.