Financial Analysis: Tarsus Pharmaceuticals (NASDAQ:TARS) & Vireo Growth (OTCMKTS:VREOD)

Vireo Growth (OTCMKTS:VREOD) and Tarsus Pharmaceuticals (NASDAQ:TARS) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Valuation and Earnings

This table compares Vireo Growth and Tarsus Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vireo Growth	$268.77 million	1.68	-$68.11 million	($3.30)	-3.02
Tarsus Pharmaceuticals	$451.36 million	7.03	-$66.42 million	($1.09)	-66.32

Tarsus Pharmaceuticals has higher revenue and earnings than Vireo Growth. Tarsus Pharmaceuticals is trading at a lower price-to-earnings ratio than Vireo Growth, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Vireo Growth has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500. Comparatively, Tarsus Pharmaceuticals has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Vireo Growth and Tarsus Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vireo Growth	1	0	0	0	1.00
Tarsus Pharmaceuticals	1	1	7	1	2.80

Tarsus Pharmaceuticals has a consensus price target of $100.86, indicating a potential upside of 39.52%. Given Tarsus Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Tarsus Pharmaceuticals is more favorable than Vireo Growth.

Profitability

This table compares Vireo Growth and Tarsus Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vireo Growth	-23.37%	-19.76%	-7.15%
Tarsus Pharmaceuticals	-7.67%	-13.53%	-8.12%

Institutional and Insider Ownership

90.0% of Tarsus Pharmaceuticals shares are owned by institutional investors. 3.8% of Vireo Growth shares are owned by company insiders. Comparatively, 9.6% of Tarsus Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Tarsus Pharmaceuticals beats Vireo Growth on 12 of the 15 factors compared between the two stocks.

About Vireo Growth

Goodness Growth Holdings, Inc. operates as a cannabis company in the United States. The company cultivates, processes, and distributes medical and adult-use cannabis products. It sells cannabis products through its network of Green Goods and other Goodness Growth branded retail dispensaries and third-party dispensaries in Maryland, Minnesota, and New York. The company was formerly known as Vireo Health International Inc. and changed its name to Goodness Growth Holdings, Inc. in June 2021. Goodness Growth Holdings, Inc. is headquartered in Minneapolis, Minnesota.

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.