Reviewing Tarsus Pharmaceuticals (NASDAQ:TARS) and Organon & Co. (NYSE:OGN)

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

Volatility and Risk

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

Earnings & Valuation

This table compares Tarsus Pharmaceuticals and Organon & Co.”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tarsus Pharmaceuticals	$451.36 million	7.54	-$66.42 million	($1.09)	-63.37
Organon & Co.	$6.22 billion	0.59	$187.00 million	$0.76	18.23

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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tarsus Pharmaceuticals	-102.93%	-20.22%	-11.98%
Organon & Co.	3.49%	82.06%	6.03%

Analyst Recommendations

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

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

Tarsus Pharmaceuticals presently has a consensus target price of $103.43, indicating a potential upside of 49.74%. Organon & Co. has a consensus target price of $11.40, indicating a potential downside of 17.72%. Given Tarsus Pharmaceuticals’ stronger consensus rating and higher possible upside, equities analysts clearly believe Tarsus Pharmaceuticals is more favorable than Organon & Co..

Insider and Institutional Ownership

90.0% of Tarsus Pharmaceuticals shares are owned by institutional investors. Comparatively, 77.4% of Organon & Co. shares are owned by institutional investors. 9.6% of Tarsus Pharmaceuticals shares are owned by company insiders. Comparatively, 1.6% of Organon & Co. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

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

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.

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.