Harmony Biosciences (NASDAQ:HRMY – Get Free Report) and Zentalis Pharmaceuticals (NASDAQ:ZNTL – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.
Earnings and Valuation
This table compares Harmony Biosciences and Zentalis Pharmaceuticals”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Harmony Biosciences | $868.45 million | 2.85 | $158.69 million | $3.08 | 13.79 |
| Zentalis Pharmaceuticals | $67.43 million | 3.29 | -$137.06 million | ($1.95) | -1.59 |
Risk & Volatility
Harmony Biosciences has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Zentalis Pharmaceuticals has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations for Harmony Biosciences and Zentalis Pharmaceuticals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Harmony Biosciences | 1 | 5 | 5 | 0 | 2.36 |
| Zentalis Pharmaceuticals | 1 | 4 | 5 | 0 | 2.40 |
Harmony Biosciences presently has a consensus target price of $47.11, indicating a potential upside of 10.93%. Zentalis Pharmaceuticals has a consensus target price of $6.75, indicating a potential upside of 118.09%. Given Zentalis Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Zentalis Pharmaceuticals is more favorable than Harmony Biosciences.
Profitability
This table compares Harmony Biosciences and Zentalis 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% |
| Zentalis Pharmaceuticals | N/A | -70.18% | -51.46% |
Insider and Institutional Ownership
86.2% of Harmony Biosciences shares are held by institutional investors. 11.0% of Harmony Biosciences shares are held by insiders. Comparatively, 3.8% of Zentalis Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Harmony Biosciences beats Zentalis Pharmaceuticals on 9 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 Zentalis Pharmaceuticals
Zentalis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule therapeutics for the treatment of various cancers. Its products candidatures include the ZN-c3, an inhibitor of WEE1, a protein tyrosine kinase for the treatment of inhibitor for advanced solid tumors and hematological malignancies; in Phase 2 clinical trial as a monotherapy for the treatment of uterine serous carcinoma indications; Phase 2 clinical trial in Cyclin E1 driven high-grade serous ovarian cancer, fallopian tube, or primary peritoneal cancer; Phase 1/2 clinical trial in combination with PARPi for platinum-resistant ovarian cancer; Phase 1b clinical trial in combination with chemotherapy in platinum-resistant ovarian, and peritoneal or fallopian tube cancer; Phase 1/2 clinical trial in combination with chemotherapy in relapsed or refractory osteosarcoma; Phase 1/2 clinical trial with encorafenib and cetuximab for mutant metastatic colorectal cancer; and Phase 1/2 clinical trial in combination with chemotherapy in pancreatic cancer. The company's products pipeline also includes ZN-d5, an oral small molecule inhibitor of B-cell lymphoma 2, for hematological malignancies and related disorders; and BCL-xL heterobifunctional degrader, a member of the anti-apoptotic BCL-2 proteins, for solid tumors and hematological malignancies. Zentalis Pharmaceuticals, Inc. has licensing agreements and strategic collaborations with Recurium IP Holdings, LLC; Pfizer, Inc.; Zentera Therapeutics; Dana-Farber; and GlaxoSmithKline plc. The company was incorporated in 2014 and is headquartered in New York, New York.
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