Head-To-Head Survey: Opus Genetics (NASDAQ:IRD) vs. Harmony Biosciences (NASDAQ:HRMY)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmony Biosciences	$868.45 million	2.09	$158.69 million	$2.48	12.63
Opus Genetics	$11.98 million	29.72	-$49.59 million	($1.33)	-3.29

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.

Profitability

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

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

Insider & Institutional Ownership

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmony Biosciences	1	6	4	0	2.27
Opus Genetics	2	0	11	1	2.79

Harmony Biosciences currently has a consensus target price of $40.89, indicating a potential upside of 30.51%. Opus Genetics has a consensus target price of $10.20, indicating a potential upside of 133.14%. Given Opus Genetics’ stronger consensus rating and higher probable upside, analysts plainly believe Opus Genetics is more favorable than Harmony Biosciences.

Risk and Volatility

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

Summary

Harmony Biosciences beats Opus Genetics on 9 of the 15 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 Opus Genetics

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.