Analyzing Tarsus Pharmaceuticals (NASDAQ:TARS) & Renovacor (NYSE:RCOR)

Renovacor (NYSE:RCORGet Rating) and Tarsus Pharmaceuticals (NASDAQ:TARSGet Rating) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Renovacor N/A -55.97% -25.32%
Tarsus Pharmaceuticals -184.14% -25.85% -23.57%

Institutional and Insider Ownership

48.2% of Renovacor shares are owned by institutional investors. Comparatively, 70.0% of Tarsus Pharmaceuticals shares are owned by institutional investors. 14.4% of Renovacor shares are owned by insiders. Comparatively, 33.1% of Tarsus Pharmaceuticals shares are owned by 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.

Risk & Volatility

Renovacor has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500. Comparatively, Tarsus Pharmaceuticals has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Renovacor and Tarsus Pharmaceuticals, as provided by MarketBeat.com.

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

Renovacor currently has a consensus target price of $21.00, indicating a potential upside of 1,029.03%. Tarsus Pharmaceuticals has a consensus target price of $52.75, indicating a potential upside of 207.58%. Given Renovacor’s higher probable upside, research analysts plainly believe Renovacor is more favorable than Tarsus Pharmaceuticals.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Renovacor N/A N/A -$14.10 million N/A N/A
Tarsus Pharmaceuticals $57.03 million 6.23 -$13.83 million ($2.17) -7.90

Tarsus Pharmaceuticals has higher revenue and earnings than Renovacor.

Summary

Tarsus Pharmaceuticals beats Renovacor on 9 of the 11 factors compared between the two stocks.

About Renovacor

(Get Rating)

Renovacor, Inc., a biotechnology company, focuses on delivering various precision therapies to enhance the lives of patients and families battling genetically-driven cardiovascular and mechanistically-related diseases. It primarily focuses on the treatment of BCL2-associated athanogene 3 (BAG3) mutation-associated dilated cardiomyopathy (DCM). The company's lead product candidate is REN-001, a recombinant adeno-associated virus 9-based gene therapy designed to deliver a functional BAG3 gene to augment BAG3 protein levels in cardiomyocytes, and slow or halt progression of BAG3 DCM. It is also developing a pipeline of BAG3-associated gene therapies for diseases with high unmet medical need associated with mutations in the BAG3 gene and mechanistically linked to BAG3's expression and function. The company was founded in 2013 and is based in Greenwich, Connecticut.

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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