Tarsus Pharmaceuticals (NASDAQ:TARS) and PharmaCyte Biotech (OTCMKTS:PMCBD) Critical Analysis

Tarsus Pharmaceuticals (NASDAQ:TARS) and PharmaCyte Biotech (OTCMKTS:PMCBD) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Valuation and Earnings

This table compares Tarsus Pharmaceuticals and PharmaCyte Biotech”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tarsus Pharmaceuticals	$182.95 million	9.35	-$135.89 million	($3.10)	-14.38
PharmaCyte Biotech	N/A	N/A	-$3.83 million	N/A	N/A

PharmaCyte Biotech has lower revenue, but higher earnings than Tarsus Pharmaceuticals.

Institutional and Insider Ownership

90.0% of Tarsus Pharmaceuticals shares are owned by institutional investors. Comparatively, 0.0% of PharmaCyte Biotech shares are owned by institutional investors. 8.3% of Tarsus Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Tarsus Pharmaceuticals and PharmaCyte Biotech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tarsus Pharmaceuticals	-103.64%	-55.86%	-39.28%
PharmaCyte Biotech	N/A	-49.09%	-43.39%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Tarsus Pharmaceuticals and PharmaCyte Biotech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tarsus Pharmaceuticals	0	1	5	1	3.00
PharmaCyte Biotech	0	0	0	0	0.00

Tarsus Pharmaceuticals presently has a consensus target price of $63.67, indicating a potential upside of 42.78%. Given Tarsus Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Tarsus Pharmaceuticals is more favorable than PharmaCyte Biotech.

Volatility and Risk

Tarsus Pharmaceuticals has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, PharmaCyte Biotech has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.

Summary

Tarsus Pharmaceuticals beats PharmaCyte Biotech on 9 of the 12 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 PharmaCyte Biotech

PharmaCyte Biotech, Inc. is a clinical stage biotechnology company, which engages in the development and commercialization of treatments for cancer and diabetes. It focuses on a proprietary cellulose-based live cell encapsulation technology called Cell-in-a-Box, which will be used as a platform for the development of treatments for inoperable pancreatic cancer and other solid cancerous tumors, and diabetes. The company was founded on October 28, 1996 and is headquartered in Laguna Hills, CA.