Werewolf Therapeutics (NASDAQ:HOWL – Get Free Report) and Harmony Biosciences (NASDAQ:HRMY – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.
Risk & Volatility
Werewolf Therapeutics has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Harmony Biosciences has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.
Profitability
This table compares Werewolf Therapeutics and Harmony Biosciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Werewolf Therapeutics | -578.80% | -58.83% | -38.45% |
| Harmony Biosciences | 17.98% | 23.16% | 14.24% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Werewolf Therapeutics | 0 | 0 | 3 | 0 | 3.00 |
| Harmony Biosciences | 0 | 0 | 8 | 0 | 3.00 |
Werewolf Therapeutics currently has a consensus target price of $9.33, suggesting a potential upside of 596.52%. Harmony Biosciences has a consensus target price of $55.00, suggesting a potential upside of 41.86%. Given Werewolf Therapeutics’ higher possible upside, equities analysts plainly believe Werewolf Therapeutics is more favorable than Harmony Biosciences.
Earnings and Valuation
This table compares Werewolf Therapeutics and Harmony Biosciences”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Werewolf Therapeutics | $3.39 million | 17.64 | -$37.37 million | ($1.53) | -0.88 |
| Harmony Biosciences | $582.02 million | 3.80 | $128.85 million | $2.11 | 18.37 |
Harmony Biosciences has higher revenue and earnings than Werewolf Therapeutics. Werewolf Therapeutics is trading at a lower price-to-earnings ratio than Harmony Biosciences, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
64.8% of Werewolf Therapeutics shares are held by institutional investors. Comparatively, 86.2% of Harmony Biosciences shares are held by institutional investors. 21.1% of Werewolf Therapeutics shares are held by insiders. Comparatively, 30.8% of Harmony Biosciences shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Harmony Biosciences beats Werewolf Therapeutics on 11 of the 13 factors compared between the two stocks.
About Werewolf Therapeutics
Werewolf Therapeutics, Inc., a biopharmaceutical company, develops therapeutics engineered to stimulate the body's immune system for the treatment of cancer. The company, through its proprietary PREDATOR platform, designs conditionally activated molecules that stimulate adaptive and innate immunity for addressing the limitations of conventional proinflammatory immune therapies. Its lead product candidates are WTX-124, a conditionally activated Interleukin-2 INDUKINE molecule that is in Phase I/Ib clinical trial for the treatment of advanced or metastatic solid tumors; and WTX-330, a conditionally activated Interleukin-12 INDUKINE molecule, which is in Phase I clinical trial for the treatment of advanced or metastatic solid tumors and lymphoma. The company is also developing JZP898, a conditionally activated interferon alpha INDUKINE molecule for the treatment of cancer; and WTX-712, an activated Interleukin-21(IL-21) and WTX-518, an activated IL-18 (IL-18) INDUKINE molecule for the treatment of cancer. Werewolf Therapeutics, Inc. was incorporated in 2017 and is headquartered in Watertown, Massachusetts.
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.
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