Reviewing Phibro Animal Health (NASDAQ:PAHC) & Harmony Biosciences (NASDAQ:HRMY)

Harmony Biosciences (NASDAQ:HRMY) and Phibro Animal Health (NASDAQ:PAHC) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Analyst Ratings

This is a summary of recent ratings for Harmony Biosciences and Phibro Animal Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmony Biosciences	1	5	5	0	2.36
Phibro Animal Health	0	2	1	1	2.75

Harmony Biosciences currently has a consensus price target of $47.44, indicating a potential upside of 19.69%. Phibro Animal Health has a consensus price target of $47.67, indicating a potential upside of 28.00%. Given Phibro Animal Health’s stronger consensus rating and higher probable upside, analysts clearly believe Phibro Animal Health is more favorable than Harmony Biosciences.

Risk & Volatility

Harmony Biosciences has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Phibro Animal Health has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Earnings & Valuation

This table compares Harmony Biosciences and Phibro Animal Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmony Biosciences	$959.90 million	2.40	$158.69 million	$3.08	12.87
Phibro Animal Health	$1.52 billion	1.00	$99.72 million	$2.44	15.26

Harmony Biosciences has higher earnings, but lower revenue than Phibro Animal Health. Harmony Biosciences is trading at a lower price-to-earnings ratio than Phibro Animal Health, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Harmony Biosciences and Phibro Animal Health’s 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%
Phibro Animal Health	6.57%	37.86%	9.18%

Institutional & Insider Ownership

86.2% of Harmony Biosciences shares are held by institutional investors. Comparatively, 99.3% of Phibro Animal Health shares are held by institutional investors. 11.0% of Harmony Biosciences shares are held by company insiders. Comparatively, 48.5% of Phibro Animal Health shares are held 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.

Summary

Phibro Animal Health beats Harmony Biosciences on 8 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 Phibro Animal Health

Phibro Animal Health Corporation operates as an animal health and mineral nutrition company in the United States, Israel, Brazil, Ireland, and internationally. It operates through three segments: Animal Health, Mineral Nutrition, and Performance Products. The company develops, manufactures, and markets various products for food and companion animals including poultry, swine, beef and dairy cattle, aquaculture, and dogs. It also offers animal health products, such as antibacterials, anticoccidials, nutritional specialty, and vaccines and vaccine adjuvants for animal’s health and performance, food safety, and animal welfare; and engages in development, manufacturing, and marketing of microbial and bioproducts for various applications serving animal health and nutrition, environmental, industrial, and agricultural customers. In addition, the company develops, manufactures, and markets conventionally licensed and autogenous vaccine products, as well as adjuvants for animal vaccine manufacturers. Further, it provides formulations and concentrations of trace minerals, such as zinc, manganese, copper, iron, and other compounds to fortify the daily feed requirements of their livestock’s diets and maintain optimal balance of trace elements in animals. Additionally, the company offers specialty ingredients for personal care, industrial chemical, and chemical catalyst industries. It sells its animal health and mineral nutrition products through local sales offices to integrated poultry, swine, and cattle producers, as well as through commercial animal feed manufacturers, wholesalers, and distributors. The company was formerly known as Philipp Brothers Chemicals, Inc. and changed its name to Phibro Animal Health Corporation in July 2003. Phibro Animal Health Corporation was founded in 1946 and is headquartered in Teaneck, New Jersey.