Head-To-Head Analysis: XBiotech (NASDAQ:XBIT) & Harmony Biosciences (NASDAQ:HRMY)

XBiotech (NASDAQ:XBIT) and Harmony Biosciences (NASDAQ:HRMY) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for XBiotech and Harmony Biosciences, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XBiotech	0	0	0	0	N/A
Harmony Biosciences	2	0	7	0	2.56

Harmony Biosciences has a consensus price target of $41.33, indicating a potential upside of 6.01%. Given Harmony Biosciences’ higher possible upside, analysts clearly believe Harmony Biosciences is more favorable than XBiotech.

Risk and Volatility

XBiotech has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Harmony Biosciences has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Earnings and Valuation

This table compares XBiotech and Harmony Biosciences”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XBiotech	$4.01 million	60.39	-$24.56 million	($1.02)	-7.79
Harmony Biosciences	$656.11 million	3.37	$128.85 million	$2.31	16.88

Harmony Biosciences has higher revenue and earnings than XBiotech. XBiotech 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 XBiotech and Harmony Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XBiotech	N/A	-16.52%	-15.56%
Harmony Biosciences	17.53%	22.97%	13.96%

Insider and Institutional Ownership

55.7% of XBiotech shares are owned by institutional investors. Comparatively, 86.2% of Harmony Biosciences shares are owned by institutional investors. 33.1% of XBiotech shares are owned by insiders. Comparatively, 30.8% of Harmony Biosciences shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Harmony Biosciences beats XBiotech on 10 of the 13 factors compared between the two stocks.

About XBiotech

XBiotech Inc., a biopharmaceutical company, discovers, develops, and commercializes True Human monoclonal antibodies for treating various diseases. The company focuses on developing a pipeline of product candidates targeting both inflammatory and infectious diseases. It is also developing interleukin-1 alpha therapies to treat variety of medical conditions, such as cancer, stroke, heart attack, or arthritis; and mediates tissue breakdown, angiogenesis, the formation of blood clots, malaise, muscle wasting, and inflammation. The company was incorporated in 2005 and is headquartered in Austin, Texas.

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.