Head to Head Comparison: Harmony Biosciences (NASDAQ:HRMY) vs. Phibro Animal Health (NASDAQ:PAHC)
by Kim Johansen · The Markets DailyPhibro Animal Health (NASDAQ:PAHC – Get Free Report) and Harmony Biosciences (NASDAQ:HRMY – Get Free Report) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.
Analyst Ratings
This is a summary of recent ratings for Phibro Animal Health and Harmony Biosciences, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Phibro Animal Health | 0 | 2 | 1 | 1 | 2.75 |
| Harmony Biosciences | 1 | 5 | 5 | 0 | 2.36 |
Phibro Animal Health currently has a consensus price target of $47.67, suggesting a potential upside of 38.36%. Harmony Biosciences has a consensus price target of $47.11, suggesting a potential upside of 14.18%. Given Phibro Animal Health’s stronger consensus rating and higher possible upside, equities analysts clearly believe Phibro Animal Health is more favorable than Harmony Biosciences.
Insider and Institutional Ownership
99.3% of Phibro Animal Health shares are owned by institutional investors. Comparatively, 86.2% of Harmony Biosciences shares are owned by institutional investors. 50.1% of Phibro Animal Health shares are owned by company insiders. Comparatively, 11.0% of Harmony Biosciences shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Phibro Animal Health and Harmony Biosciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Phibro Animal Health | 6.57% | 37.86% | 9.18% |
| Harmony Biosciences | 18.88% | 20.06% | 14.15% |
Volatility and Risk
Phibro Animal Health has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Harmony Biosciences has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.
Valuation & Earnings
This table compares Phibro Animal Health and Harmony Biosciences”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Phibro Animal Health | $1.52 billion | 0.92 | $99.72 million | $2.44 | 14.12 |
| Harmony Biosciences | $868.45 million | 2.77 | $158.69 million | $3.08 | 13.40 |
Harmony Biosciences has lower revenue, but higher earnings than Phibro Animal Health. Harmony Biosciences is trading at a lower price-to-earnings ratio than Phibro Animal Health, indicating that it is currently the more affordable of the two stocks.
Summary
Phibro Animal Health beats Harmony Biosciences on 8 of the 15 factors compared between the two stocks.
About Phibro Animal Health
Phibro Animal Health Corporation operates as an animal health and mineral nutrition company in the United States, Israel, Brazil, Ireland, and internationally. It operates through three segments: Animal Health, Mineral Nutrition, and Performance Products. The company develops, manufactures, and markets various products for food and companion animals including poultry, swine, beef and dairy cattle, aquaculture, and dogs. It also offers animal health products, such as antibacterials, anticoccidials, nutritional specialty, and vaccines and vaccine adjuvants for animal’s health and performance, food safety, and animal welfare; and engages in development, manufacturing, and marketing of microbial and bioproducts for various applications serving animal health and nutrition, environmental, industrial, and agricultural customers. In addition, the company develops, manufactures, and markets conventionally licensed and autogenous vaccine products, as well as adjuvants for animal vaccine manufacturers. Further, it provides formulations and concentrations of trace minerals, such as zinc, manganese, copper, iron, and other compounds to fortify the daily feed requirements of their livestock’s diets and maintain optimal balance of trace elements in animals. Additionally, the company offers specialty ingredients for personal care, industrial chemical, and chemical catalyst industries. It sells its animal health and mineral nutrition products through local sales offices to integrated poultry, swine, and cattle producers, as well as through commercial animal feed manufacturers, wholesalers, and distributors. The company was formerly known as Philipp Brothers Chemicals, Inc. and changed its name to Phibro Animal Health Corporation in July 2003. Phibro Animal Health Corporation was founded in 1946 and is headquartered in Teaneck, New Jersey.
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.