Head-To-Head Analysis: Harmony Biosciences (NASDAQ:HRMY) & Zentalis Pharmaceuticals (NASDAQ:ZNTL)

Zentalis Pharmaceuticals (NASDAQ:ZNTL) and Harmony Biosciences (NASDAQ:HRMY) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Earnings and Valuation

This table compares Zentalis Pharmaceuticals and Harmony Biosciences”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zentalis Pharmaceuticals	$67.43 million	3.29	-$137.06 million	($1.95)	-1.59
Harmony Biosciences	$868.45 million	2.85	$158.69 million	$3.08	13.79

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

	Net Margins	Return on Equity	Return on Assets
Zentalis Pharmaceuticals	N/A	-70.18%	-51.46%
Harmony Biosciences	18.88%	20.06%	14.15%

Insider & Institutional Ownership

86.2% of Harmony Biosciences shares are held by institutional investors. 3.8% of Zentalis Pharmaceuticals shares are held by insiders. Comparatively, 11.0% of Harmony Biosciences shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Zentalis Pharmaceuticals has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, Harmony Biosciences has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Zentalis Pharmaceuticals and Harmony Biosciences, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zentalis Pharmaceuticals	1	4	5	0	2.40
Harmony Biosciences	1	5	5	0	2.36

Zentalis Pharmaceuticals presently has a consensus target price of $6.75, indicating a potential upside of 118.09%. Harmony Biosciences has a consensus target price of $47.11, indicating a potential upside of 10.93%. Given Zentalis Pharmaceuticals’ stronger consensus rating and higher possible upside, research analysts clearly believe Zentalis Pharmaceuticals is more favorable than Harmony Biosciences.

Summary

Harmony Biosciences beats Zentalis Pharmaceuticals on 9 of the 13 factors compared between the two stocks.

About Zentalis Pharmaceuticals

Zentalis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule therapeutics for the treatment of various cancers. Its products candidatures include the ZN-c3, an inhibitor of WEE1, a protein tyrosine kinase for the treatment of inhibitor for advanced solid tumors and hematological malignancies; in Phase 2 clinical trial as a monotherapy for the treatment of uterine serous carcinoma indications; Phase 2 clinical trial in Cyclin E1 driven high-grade serous ovarian cancer, fallopian tube, or primary peritoneal cancer; Phase 1/2 clinical trial in combination with PARPi for platinum-resistant ovarian cancer; Phase 1b clinical trial in combination with chemotherapy in platinum-resistant ovarian, and peritoneal or fallopian tube cancer; Phase 1/2 clinical trial in combination with chemotherapy in relapsed or refractory osteosarcoma; Phase 1/2 clinical trial with encorafenib and cetuximab for mutant metastatic colorectal cancer; and Phase 1/2 clinical trial in combination with chemotherapy in pancreatic cancer. The company's products pipeline also includes ZN-d5, an oral small molecule inhibitor of B-cell lymphoma 2, for hematological malignancies and related disorders; and BCL-xL heterobifunctional degrader, a member of the anti-apoptotic BCL-2 proteins, for solid tumors and hematological malignancies. Zentalis Pharmaceuticals, Inc. has licensing agreements and strategic collaborations with Recurium IP Holdings, LLC; Pfizer, Inc.; Zentera Therapeutics; Dana-Farber; and GlaxoSmithKline plc. The company was incorporated in 2014 and is headquartered in New York, New York.

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.