Comparing Tenaya Therapeutics (NASDAQ:TNYA) and Harmony Biosciences (NASDAQ:HRMY)

Harmony Biosciences (NASDAQ:HRMY) and Tenaya Therapeutics (NASDAQ:TNYA) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Insider and Institutional Ownership

86.2% of Harmony Biosciences shares are owned by institutional investors. Comparatively, 90.5% of Tenaya Therapeutics shares are owned by institutional investors. 11.0% of Harmony Biosciences shares are owned by company insiders. Comparatively, 2.5% of Tenaya Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Harmony Biosciences and Tenaya Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmony Biosciences	$899.11 million	2.46	$158.69 million	$2.48	15.41
Tenaya Therapeutics	N/A	N/A	-$90.60 million	($0.47)	-1.81

Harmony Biosciences has higher revenue and earnings than Tenaya Therapeutics. Tenaya Therapeutics 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 Tenaya Therapeutics’ 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%
Tenaya Therapeutics	N/A	-80.56%	-65.21%

Analyst Ratings

This is a summary of current ratings for Harmony Biosciences and Tenaya Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmony Biosciences	1	6	4	0	2.27
Tenaya Therapeutics	1	0	5	1	2.86

Harmony Biosciences presently has a consensus price target of $41.44, indicating a potential upside of 8.46%. Tenaya Therapeutics has a consensus price target of $4.00, indicating a potential upside of 370.59%. Given Tenaya Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Tenaya Therapeutics is more favorable than Harmony Biosciences.

Risk and Volatility

Harmony Biosciences has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Tenaya Therapeutics has a beta of 2.83, meaning that its share price is 183% more volatile than the S&P 500.

Summary

Harmony Biosciences beats Tenaya Therapeutics on 8 of the 14 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 Tenaya Therapeutics

Tenaya Therapeutics, Inc., a biotechnology company, discovers, develops, and delivers therapies for heart disease in the United States. It develops its products through gene editing, cellular regeneration, and gene addition. The company is developing TN-201, a gene therapy for myosin binding protein C3-associated hypertrophic cardiomyopathy which is in phase 1 clinical trial; TN-301, a small molecule for heart failure with preserved ejection fraction which is in phase 1 clinical trial; and TN-401, a gene therapy for plakophilin 2-associated arrhythmogenic right ventricular cardiomyopathy which is in preclinical stage. It also develops an adeno-associated virus-based gene therapy designed to deliver the dworf gene for patient with dilated cardiomyopathy; and reprogramming program for heart failure due to prior myocardial infarction. Tenaya Therapeutics, Inc. was incorporated in 2016 and is headquartered in South San Francisco, California.