Harrow (NASDAQ:HROW – Get Free Report) and Viracta Therapeutics (NASDAQ:VIRX – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.
Institutional and Insider Ownership
72.8% of Harrow shares are held by institutional investors. Comparatively, 31.4% of Viracta Therapeutics shares are held by institutional investors. 13.7% of Harrow shares are held by company insiders. Comparatively, 10.7% of Viracta Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Harrow and Viracta Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Harrow | -21.78% | -40.59% | -8.93% |
| Viracta Therapeutics | N/A | -449.60% | -92.47% |
Volatility & Risk
Earnings & Valuation
This table compares Harrow and Viracta Therapeutics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Harrow | $154.15 million | 11.56 | -$24.41 million | ($0.91) | -55.35 |
| Viracta Therapeutics | N/A | N/A | -$51.06 million | ($1.23) | -0.19 |
Harrow has higher revenue and earnings than Viracta Therapeutics. Harrow is trading at a lower price-to-earnings ratio than Viracta Therapeutics, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Harrow and Viracta Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Harrow | 0 | 0 | 3 | 0 | 3.00 |
| Viracta Therapeutics | 0 | 1 | 3 | 0 | 2.75 |
Harrow currently has a consensus target price of $56.67, suggesting a potential upside of 12.50%. Viracta Therapeutics has a consensus target price of $5.50, suggesting a potential upside of 2,260.52%. Given Viracta Therapeutics’ higher probable upside, analysts clearly believe Viracta Therapeutics is more favorable than Harrow.
Summary
Harrow beats Viracta Therapeutics on 9 of the 12 factors compared between the two stocks.
About Harrow
Harrow, Inc. operates as an ophthalmic-focused healthcare company. The company owns ImprimisRx, an ophthalmology outsourcing and pharmaceutical compounding business. The company was formerly known as Imprimis Pharmaceuticals, Inc. and changed its name to Harrow Health, Inc. in December 2018. Harrow Health, Inc. was incorporated in 2006 and is headquartered in Nashville, Tennessee.
About Viracta Therapeutics
Viracta Therapeutics, Inc., a clinical-stage precision oncology company, focuses on the treatment and prevention of virus-associated cancers that impact patients worldwide. Its lead product candidate is Nana-val, an all-oral combination therapy of its proprietary investigational drug, nanatinostat, and the antiviral agent valganciclovir. The company's Nana-val is in various ongoing clinical trials, including NAVAL-1, an open-label Phase 2 basket trial for the treatment of multiple subtypes of relapsed/refractory Epstein-Barr virus-positive (EBV+) lymphoma, as well as an open-label Phase 1b/2 trial for the treatment of EBV+ recurrent or metastatic nasopharyngeal carcinoma and other EBV+ solid tumors. Its product pipeline also includes vecabrutinib, a clinical-stage product candidate; and VRx-510, a preclinical product candidate. The company is headquartered in Cardiff, California.
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