Critical Review: Tarsus Pharmaceuticals (TARS) vs. Its Competitors

Tarsus Pharmaceuticals (NASDAQ:TARS) is one of 896 public companies in the “Pharmaceuticals” industry, but how does it compare to its rivals? We will compare Tarsus Pharmaceuticals to similar companies based on the strength of its risk, valuation, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Earnings & Valuation

This table compares Tarsus Pharmaceuticals and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tarsus Pharmaceuticals	$682.20 million	-$66.42 million	-4.45
Tarsus Pharmaceuticals Competitors	$4.32 billion	$3.15 billion	548.20

Tarsus Pharmaceuticals’ rivals have higher revenue and earnings than Tarsus Pharmaceuticals. Tarsus Pharmaceuticals is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tarsus Pharmaceuticals	-102.93%	-24.51%	-12.40%
Tarsus Pharmaceuticals Competitors	-2,381.29%	-218.58%	-15.77%

Volatility & Risk

Tarsus Pharmaceuticals has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Tarsus Pharmaceuticals’ rivals have a beta of -4.12, suggesting that their average share price is 512% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Tarsus Pharmaceuticals and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tarsus Pharmaceuticals	1	1	7	1	2.80
Tarsus Pharmaceuticals Competitors	7777	13864	25753	1034	2.41

Tarsus Pharmaceuticals currently has a consensus price target of $104.57, indicating a potential upside of 54.87%. As a group, “Pharmaceuticals” companies have a potential upside of 24.63%. Given Tarsus Pharmaceuticals’ stronger consensus rating and higher probable upside, research analysts clearly believe Tarsus Pharmaceuticals is more favorable than its rivals.

Insider & Institutional Ownership

90.0% of Tarsus Pharmaceuticals shares are held by institutional investors. Comparatively, 32.5% of shares of all “Pharmaceuticals” companies are held by institutional investors. 9.6% of Tarsus Pharmaceuticals shares are held by company insiders. Comparatively, 14.1% of shares of all “Pharmaceuticals” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Tarsus Pharmaceuticals beats its rivals on 9 of the 13 factors compared.

Tarsus Pharmaceuticals Company Profile

Tarsus Pharmaceuticals, Inc., a commercial stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutic candidates for eye care in the United States. The company's lead product candidate is XDEMVY, a novel therapeutic for the treatment of blepharitis caused by the infestation of Demodex mites, as well as to treat meibomian gland disease. It is 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 infectious disease prevention. Tarsus Pharmaceuticals, Inc. was incorporated in 2016 and is headquartered in Irvine, California.