Head-To-Head Survey: Organon & Co. (NYSE:OGN) versus Tarsus Pharmaceuticals (NASDAQ:TARS)

Organon & Co. (NYSE:OGN) and Tarsus Pharmaceuticals (NASDAQ:TARS) are both mid-cap healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Volatility & Risk

Organon & Co. has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Tarsus Pharmaceuticals has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.

Earnings & Valuation

This table compares Organon & Co. and Tarsus Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organon & Co.	$6.22 billion	0.58	$187.00 million	$0.76	18.20
Tarsus Pharmaceuticals	$451.36 million	7.49	-$66.42 million	($15.19)	-4.52

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

Institutional & Insider Ownership

77.4% of Organon & Co. shares are held by institutional investors. Comparatively, 90.0% of Tarsus Pharmaceuticals shares are held by institutional investors. 1.6% of Organon & Co. shares are held by insiders. Comparatively, 9.6% of Tarsus Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Organon & Co. and Tarsus Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Organon & Co.	3.49%	82.06%	6.03%
Tarsus Pharmaceuticals	-7.67%	-13.53%	-8.12%

Analyst Recommendations

This is a summary of current recommendations for Organon & Co. and Tarsus Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organon & Co.	2	5	0	0	1.71
Tarsus Pharmaceuticals	1	1	7	1	2.80

Organon & Co. currently has a consensus price target of $11.40, suggesting a potential downside of 17.60%. Tarsus Pharmaceuticals has a consensus price target of $104.57, suggesting a potential upside of 52.44%. Given Tarsus Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Tarsus Pharmaceuticals is more favorable than Organon & Co..

Summary

Organon & Co. beats Tarsus Pharmaceuticals on 8 of the 15 factors compared between the two stocks.

About Organon & Co.

Organon & Co. is a science based global pharmaceutical company, which develops and delivers innovative health solutions through a portfolio of prescription therapies within women’s health, biosimilars and established brands. The company was founded on March 11, 2020, and is headquartered in Jersey City, NJ.

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.