Contrasting Tarsus Pharmaceuticals (NASDAQ:TARS) and Fennec Pharmaceuticals (NASDAQ:FENC)

Tarsus Pharmaceuticals (NASDAQ:TARSGet Free Report) and Fennec Pharmaceuticals (NASDAQ:FENCGet Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tarsus Pharmaceuticals $233.67 million 7.72 -$135.89 million ($2.73) -15.73
Fennec Pharmaceuticals $30.91 million 7.17 -$16.05 million ($0.51) -15.75

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

Volatility & Risk

Tarsus Pharmaceuticals has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Fennec Pharmaceuticals has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Tarsus Pharmaceuticals and Fennec Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tarsus Pharmaceuticals 0 1 5 1 3.00
Fennec Pharmaceuticals 0 0 3 1 3.25

Tarsus Pharmaceuticals currently has a consensus price target of $66.17, indicating a potential upside of 54.09%. Fennec Pharmaceuticals has a consensus price target of $13.00, indicating a potential upside of 61.89%. Given Fennec Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Fennec Pharmaceuticals is more favorable than Tarsus Pharmaceuticals.

Profitability

This table compares Tarsus Pharmaceuticals and Fennec Pharmaceuticals’ 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%
Fennec Pharmaceuticals -2.30% -53.38% -2.08%

Institutional and Insider Ownership

90.0% of Tarsus Pharmaceuticals shares are held by institutional investors. Comparatively, 55.5% of Fennec Pharmaceuticals shares are held by institutional investors. 8.3% of Tarsus Pharmaceuticals shares are held by insiders. Comparatively, 11.0% of Fennec Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Fennec Pharmaceuticals beats Tarsus Pharmaceuticals on 8 of the 14 factors compared between the two stocks.

About Tarsus Pharmaceuticals

(Get Free Report)

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 Fennec Pharmaceuticals

(Get Free Report)

Fennec Pharmaceuticals Inc., a biopharmaceutical company, develops product candidates for use in the treatment of cancer in the United States. Its lead product candidate is the Sodium Thiosulfate, which has completed the Phase III clinical trial for the prevention of cisplatin induced hearing loss or ototoxicity in children. The company was formerly known as Adherex Technologies Inc. and changed its name to Fennec Pharmaceuticals Inc. in September 2014. Fennec Pharmaceuticals Inc. was founded in 1996 and is based in Research Triangle Park, North Carolina.

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