Adaptive Biotechnologies (NASDAQ:ADPT – Get Free Report) and Tarsus Pharmaceuticals (NASDAQ:TARS – Get 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, institutional ownership, risk, profitability, analyst recommendations and dividends.
Analyst Recommendations
This is a summary of current ratings and price targets for Adaptive Biotechnologies and Tarsus Pharmaceuticals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Adaptive Biotechnologies | 0 | 1 | 3 | 0 | 2.75 |
| Tarsus Pharmaceuticals | 0 | 1 | 5 | 1 | 3.00 |
Adaptive Biotechnologies presently has a consensus price target of $6.50, indicating a potential upside of 47.75%. Tarsus Pharmaceuticals has a consensus price target of $54.20, indicating a potential upside of 16.81%. Given Adaptive Biotechnologies’ higher possible upside, research analysts clearly believe Adaptive Biotechnologies is more favorable than Tarsus Pharmaceuticals.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Adaptive Biotechnologies | $170.28 million | 3.81 | -$225.25 million | ($1.34) | -3.28 |
| Tarsus Pharmaceuticals | $17.45 million | 101.65 | -$135.89 million | ($3.81) | -12.18 |
Tarsus Pharmaceuticals has lower revenue, but higher earnings than Adaptive Biotechnologies. Tarsus Pharmaceuticals is trading at a lower price-to-earnings ratio than Adaptive Biotechnologies, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Adaptive Biotechnologies has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Tarsus Pharmaceuticals has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.
Institutional & Insider Ownership
99.2% of Adaptive Biotechnologies shares are owned by institutional investors. Comparatively, 90.0% of Tarsus Pharmaceuticals shares are owned by institutional investors. 6.2% of Adaptive Biotechnologies shares are owned by company insiders. Comparatively, 8.3% of Tarsus Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Adaptive Biotechnologies and Tarsus Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Adaptive Biotechnologies | -110.13% | -62.06% | -26.82% |
| Tarsus Pharmaceuticals | -103.64% | -55.86% | -39.28% |
Summary
Tarsus Pharmaceuticals beats Adaptive Biotechnologies on 8 of the 15 factors compared between the two stocks.
About Adaptive Biotechnologies
Adaptive Biotechnologies Corporation, a commercial-stage company, develops an immune medicine platform for the diagnosis and treatment of various diseases. The company offers immunosequencing platform which combines a suite of proprietary chemistry, computational biology, and machine learning to generate clinical immunomics data to decode the adaptive immune system. It also provides clonoSEQ diagnostic test which detects and monitors the remaining number of cancer cells that are present in a patient’s body during and after treatment, known as Minimal Residual Disease (MRD). The company offers products and services for life sciences research, clinical diagnostics, and drug discovery applications. Adaptive Biotechnologies Corporation has strategic collaborations with Genentech, Inc. for the development, manufacture, and commercialization of neoantigen directed T cell therapies for the treatment of a range of cancers; and Microsoft Corporation to develop diagnostic tests for the early detection of various diseases from a single blood test. The company was formerly known as Adaptive TCR Corporation and changed its name to Adaptive Biotechnologies Corporation in December 2011. Adaptive Biotechnologies Corporation was incorporated in 2009 and is headquartered in Seattle, Washington.
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.
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