Harmony Biosciences (NASDAQ:HRMY – Get Free Report) and Vanda Pharmaceuticals (NASDAQ:VNDA – Get Free Report) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.
Earnings and Valuation
This table compares Harmony Biosciences and Vanda Pharmaceuticals”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Harmony Biosciences | $868.45 million | 2.82 | $158.69 million | $3.08 | 13.64 |
| Vanda Pharmaceuticals | $216.10 million | 1.44 | -$220.47 million | ($4.63) | -1.11 |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Harmony Biosciences and Vanda Pharmaceuticals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Harmony Biosciences | 1 | 5 | 5 | 0 | 2.36 |
| Vanda Pharmaceuticals | 1 | 2 | 5 | 0 | 2.50 |
Harmony Biosciences presently has a consensus price target of $47.11, indicating a potential upside of 12.12%. Vanda Pharmaceuticals has a consensus price target of $13.70, indicating a potential upside of 167.06%. Given Vanda Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Vanda Pharmaceuticals is more favorable than Harmony Biosciences.
Risk & Volatility
Harmony Biosciences has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Vanda Pharmaceuticals has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.
Insider & Institutional Ownership
86.2% of Harmony Biosciences shares are held by institutional investors. Comparatively, 88.1% of Vanda Pharmaceuticals shares are held by institutional investors. 11.0% of Harmony Biosciences shares are held by company insiders. Comparatively, 10.7% of Vanda 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.
Profitability
This table compares Harmony Biosciences and Vanda Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Harmony Biosciences | 18.88% | 20.06% | 14.15% |
| Vanda Pharmaceuticals | -127.41% | -49.81% | -33.29% |
Summary
Harmony Biosciences beats Vanda Pharmaceuticals on 10 of the 13 factors compared between the two stocks.
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.
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.
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