Comparing Harrow (NASDAQ:HROW) and Journey Medical (NASDAQ:DERM)

Journey Medical (NASDAQ:DERM) and Harrow (NASDAQ:HROW) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Volatility and Risk

Journey Medical has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Harrow has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Profitability

This table compares Journey Medical and Harrow’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Journey Medical	-14.82%	-35.57%	-10.88%
Harrow	-5.57%	19.59%	2.26%

Insider and Institutional Ownership

7.3% of Journey Medical shares are held by institutional investors. Comparatively, 72.8% of Harrow shares are held by institutional investors. 14.5% of Journey Medical shares are held by company insiders. Comparatively, 12.8% of Harrow 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.

Valuation & Earnings

This table compares Journey Medical and Harrow”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Journey Medical	$61.86 million	2.77	-$11.43 million	($0.37)	-16.81
Harrow	$272.30 million	5.87	-$5.14 million	($0.41)	-104.56

Harrow has higher revenue and earnings than Journey Medical. Harrow is trading at a lower price-to-earnings ratio than Journey Medical, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for Journey Medical and Harrow, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Journey Medical	1	1	2	0	2.25
Harrow	1	2	8	0	2.64

Journey Medical presently has a consensus price target of $13.00, indicating a potential upside of 109.00%. Harrow has a consensus price target of $69.43, indicating a potential upside of 61.95%. Given Journey Medical’s higher probable upside, equities research analysts clearly believe Journey Medical is more favorable than Harrow.

Summary

Harrow beats Journey Medical on 9 of the 14 factors compared between the two stocks.

About Journey Medical

Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant nodular acne; and Amzeeq, a topical formulation of minocycline for the treatment of inflammatory lesions of non-nodular moderate to severe acne vulgaris. It also offers Zilxi, a topical minocycline treatment for inflammatory lesions of rosacea; Exelderm cream and solution an antifungal intended for topical use; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; and Luxamend, a water-based emulsion formulated to provide a moist healing environment for superficial wounds; minor cuts or scrapes; dermal ulcers; donor sites; first- and second-degree burns, including sunburns; and radiation dermatitis. In addition, the company sells sulconazole nitrate cream and solution indicated for the treatment of tinea cruris, tinea corporis, and tinea versicolor; and doxycycline hyclate tablets, as an adjunctive therapy for severe acne. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona. Journey Medical Corporation is a subsidiary of Fortress Biotech, Inc.

About Harrow

Harrow, Inc. operates as an ophthalmic-focused healthcare company. The company owns ImprimisRx, an ophthalmology outsourcing and pharmaceutical compounding business. The company was formerly known as Imprimis Pharmaceuticals, Inc. and changed its name to Harrow Health, Inc. in December 2018. Harrow Health, Inc. was incorporated in 2006 and is headquartered in Nashville, Tennessee.