Critical Comparison: BioAtla (NASDAQ:BCAB) versus Tarsus Pharmaceuticals (NASDAQ:TARS)

BioAtla (NASDAQ:BCABGet Rating) and Tarsus Pharmaceuticals (NASDAQ:TARSGet Rating) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for BioAtla and Tarsus Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BioAtla 0 1 2 0 2.67
Tarsus Pharmaceuticals 0 0 3 1 3.25

BioAtla currently has a consensus target price of $35.00, suggesting a potential upside of 1,441.85%. Tarsus Pharmaceuticals has a consensus target price of $54.00, suggesting a potential upside of 302.68%. Given BioAtla’s higher probable upside, research analysts clearly believe BioAtla is more favorable than Tarsus Pharmaceuticals.

Profitability

This table compares BioAtla and Tarsus Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BioAtla N/A -48.89% -40.45%
Tarsus Pharmaceuticals -184.14% -25.85% -23.57%

Earnings & Valuation

This table compares BioAtla and Tarsus Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BioAtla $250,000.00 339.72 -$95.40 million ($2.86) -0.79
Tarsus Pharmaceuticals $57.03 million 4.87 -$13.83 million ($2.17) -6.18

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

Volatility and Risk

BioAtla has a beta of 2.46, indicating that its stock price is 146% more volatile than the S&P 500. Comparatively, Tarsus Pharmaceuticals has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.

Insider & Institutional Ownership

70.8% of BioAtla shares are held by institutional investors. Comparatively, 70.0% of Tarsus Pharmaceuticals shares are held by institutional investors. 35.5% of BioAtla shares are held by insiders. Comparatively, 33.1% of Tarsus Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Tarsus Pharmaceuticals beats BioAtla on 8 of the 15 factors compared between the two stocks.

About BioAtla (Get Rating)

BioAtla, Inc., a clinical stage biopharmaceutical company, develops specific and selective antibody-based therapeutics for the treatment of solid tumor cancer. Its lead product candidate is BA3011, a conditionally active biologic (CAB) antibody-drug conjugate (ADC) for soft tissue and bone sarcoma tumors, non-small cell lung cancer (NSCLC), and ovarian cancer. It also develops BA3021, a CAB ADC for multiple solid tumor types, including NSCLC, melanoma, and ovarian cancer; and BA3071, which is a CAB anti-cytotoxic T-lymphocyte-associated antigen 4 antibody for renal cell carcinoma, NSCLC, small cell lung cancer, hepatocellular carcinoma, melanoma, bladder cancer, gastric cancer, and cervical cancer. BioAtla, Inc. was founded in 2007 and is based in San Diego, California.

About Tarsus Pharmaceuticals (Get Rating)

Tarsus Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutic candidates for ophthalmic conditions. Its lead product candidate is TP-03, a novel therapeutic that is in Phase III for the treatment of blepharitis caused by the infestation of Demodex mites, as well as to treat meibomian gland disease. The company is also 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 diseases. Tarsus Pharmaceuticals, Inc. was incorporated in 2016 and is headquartered in Irvine, California.

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