Critical Survey: Viracta Therapeutics (NASDAQ:VIRX) and Harrow (NASDAQ:HROW)
by Renee Jackson · The Cerbat GemViracta Therapeutics (NASDAQ:VIRX – Get Free Report) and Harrow (NASDAQ:HROW – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
Profitability
This table compares Viracta Therapeutics and Harrow’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Viracta Therapeutics | N/A | -449.60% | -92.47% |
| Harrow | -21.78% | -40.59% | -8.93% |
Volatility and Risk
Viracta Therapeutics has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Harrow has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.
Institutional and Insider Ownership
31.4% of Viracta Therapeutics shares are owned by institutional investors. Comparatively, 72.8% of Harrow shares are owned by institutional investors. 10.7% of Viracta Therapeutics shares are owned by insiders. Comparatively, 13.7% of Harrow shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Viracta Therapeutics and Harrow”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Viracta Therapeutics | N/A | N/A | -$51.06 million | ($1.23) | -0.18 |
| Harrow | $154.15 million | 11.40 | -$24.41 million | ($0.91) | -54.58 |
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 recent ratings and recommmendations for Viracta Therapeutics and Harrow, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Viracta Therapeutics | 0 | 1 | 3 | 0 | 2.75 |
| Harrow | 0 | 0 | 3 | 0 | 3.00 |
Viracta Therapeutics currently has a consensus price target of $5.50, suggesting a potential upside of 2,344.44%. Harrow has a consensus price target of $56.67, suggesting a potential upside of 14.09%. Given Viracta Therapeutics’ higher probable upside, research 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 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.
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.