Head-To-Head Analysis: Psyence Biomedical (NASDAQ:PBM) versus Harmony Biosciences (NASDAQ:HRMY)

Harmony Biosciences (NASDAQ:HRMY) and Psyence Biomedical (NASDAQ:PBM) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Risk & Volatility

Harmony Biosciences has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Psyence Biomedical has a beta of -0.43, suggesting that its stock price is 143% less volatile than the S&P 500.

Profitability

This table compares Harmony Biosciences and Psyence Biomedical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Harmony Biosciences	17.98%	23.16%	14.24%
Psyence Biomedical	N/A	N/A	N/A

Institutional & Insider Ownership

86.2% of Harmony Biosciences shares are owned by institutional investors. Comparatively, 77.4% of Psyence Biomedical shares are owned by institutional investors. 30.8% of Harmony Biosciences shares are owned by company insiders. Comparatively, 3.6% of Psyence Biomedical shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Harmony Biosciences and Psyence Biomedical”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmony Biosciences	$582.02 million	3.42	$128.85 million	$2.11	16.53
Psyence Biomedical	N/A	N/A	-$51.16 million	N/A	N/A

Harmony Biosciences has higher revenue and earnings than Psyence Biomedical.

Analyst Ratings

This is a summary of recent recommendations and price targets for Harmony Biosciences and Psyence Biomedical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmony Biosciences	2	0	7	0	2.56
Psyence Biomedical	0	0	0	0	0.00

Harmony Biosciences presently has a consensus target price of $47.00, suggesting a potential upside of 34.75%. Given Harmony Biosciences’ stronger consensus rating and higher possible upside, research analysts clearly believe Harmony Biosciences is more favorable than Psyence Biomedical.

Summary

Harmony Biosciences beats Psyence Biomedical on 11 of the 11 factors compared between the two stocks.

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.

About Psyence Biomedical

Psyence Biomedical Ltd. engages in the development of botanical psilocybin-based psychedelic medicines. It also evaluates natural psilocybin for the treatment of adjustment disorder in patients with an incurable cancer diagnosis in a palliative care context. The company’s lead product candidate is PEX010, which is in Phase IIb clinical study, a capsule containing naturally sourced psilocybin for treatment of anxiety and depression, including associated ailments, such as post-traumatic stress disorder, stress, grief, and adjustment disorder in the context of palliative care. It has a partnership with iNGENu Pty Ltd to conduct a Phase IIb clinical trial of PEX010 in psilocybin-assisted psychotherapy for the treatment of AjD due to incurable cancer. The company is based in Toronto, Canada. Psyence Biomedical Ltd. operates as a subsidiary of Psyence Group Inc.