Rhythm Pharmaceuticals (NASDAQ:RYTM) and Pharming Group (NASDAQ:PHAR) Head to Head Review

Pharming Group (NASDAQ:PHAR) and Rhythm Pharmaceuticals (NASDAQ:RYTM) are both healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Earnings and Valuation

This table compares Pharming Group and Rhythm Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pharming Group	$376.13 million	1.99	$2.85 million	$0.12	87.92
Rhythm Pharmaceuticals	$189.76 million	35.29	-$196.54 million	($3.11)	-31.42

Pharming Group has higher revenue and earnings than Rhythm Pharmaceuticals. Rhythm Pharmaceuticals is trading at a lower price-to-earnings ratio than Pharming Group, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Pharming Group has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500. Comparatively, Rhythm Pharmaceuticals has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Pharming Group shares are owned by institutional investors. 2.1% of Pharming Group shares are owned by insiders. Comparatively, 5.9% of Rhythm Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Pharming Group and Rhythm Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pharming Group	2	0	3	0	2.20
Rhythm Pharmaceuticals	1	3	17	0	2.76

Pharming Group currently has a consensus price target of $38.67, suggesting a potential upside of 266.51%. Rhythm Pharmaceuticals has a consensus price target of $140.67, suggesting a potential upside of 43.96%. Given Pharming Group’s higher probable upside, analysts clearly believe Pharming Group is more favorable than Rhythm Pharmaceuticals.

Profitability

This table compares Pharming Group and Rhythm Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pharming Group	2.51%	3.40%	1.90%
Rhythm Pharmaceuticals	-85.59%	-159.87%	-44.00%

Summary

Pharming Group beats Rhythm Pharmaceuticals on 9 of the 14 factors compared between the two stocks.

About Pharming Group

Pharming Group N.V., a biopharmaceutical company, develops and commercializes protein replacement therapies and precision medicines for the treatment of rare diseases in the United States, Europe, and internationally. The company offers RUCONEST, a recombinant C1 esterase inhibitor for the treatment of acute attacks in adult and adolescent patients with acute hereditary angioedema (HAE); and Joenja (leniolisib), an oral small molecule PI3K? inhibitor for the treatment of activated phosphoinositide 3-kinase delta syndrome. It also develops OTL-105, an investigational ex-vivo autologous hematopoietic stem cell gene therapy for the treatment of HAE. The company has a development collaboration and license agreement with Novartis; and a strategic collaboration agreement with Orchard Therapeutics plc for research, development, manufacturing, and commercialization of OTL-105. Pharming Group N.V. was incorporated in 1988 and is headquartered in Leiden, the Netherlands.

About Rhythm Pharmaceuticals

Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the rare neuroendocrine diseases. The company's lead product candidate is IMCIVREE (setmelanotide), a rare melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, and Bardet-Biedl and Alström syndrome. It is in Phase 3 clinical trials for treating POMC or LEPR heterozygous deficiency obesities, steroid receptor coactivator 1 deficiency obesity, SH2B1 deficiency obesity, MC4 receptor deficiency obesity, and other MC4R disorders. The company has licensing agreements with LG Chem, Ltd; Ipsen Pharma S.A.S; Camurus; RareStone Group Ltd.; and LG Chem, Ltd. The company was formerly known as Rhythm Metabolic, Inc. and changed its name to Rhythm Pharmaceuticals, Inc. in October 2015. Rhythm Pharmaceuticals, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.