Avantor (NYSE:AVTR – Get Free Report) and COMPASS Pathways (NASDAQ:CMPS – Get Free Report) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.
Risk & Volatility
Avantor has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, COMPASS Pathways has a beta of 2.21, indicating that its share price is 121% more volatile than the S&P 500.
Valuation and Earnings
This table compares Avantor and COMPASS Pathways”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avantor | $6.78 billion | 1.43 | $711.50 million | $0.99 | 14.42 |
| COMPASS Pathways | N/A | N/A | -$155.12 million | ($1.84) | -3.49 |
Avantor has higher revenue and earnings than COMPASS Pathways. COMPASS Pathways is trading at a lower price-to-earnings ratio than Avantor, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and target prices for Avantor and COMPASS Pathways, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avantor | 0 | 8 | 7 | 0 | 2.47 |
| COMPASS Pathways | 1 | 1 | 6 | 0 | 2.63 |
Avantor presently has a consensus target price of $15.65, indicating a potential upside of 9.66%. COMPASS Pathways has a consensus target price of $16.29, indicating a potential upside of 153.28%. Given COMPASS Pathways’ stronger consensus rating and higher possible upside, analysts plainly believe COMPASS Pathways is more favorable than Avantor.
Institutional & Insider Ownership
95.1% of Avantor shares are held by institutional investors. Comparatively, 46.2% of COMPASS Pathways shares are held by institutional investors. 1.2% of Avantor shares are held by insiders. Comparatively, 3.9% of COMPASS Pathways shares are held by 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 Avantor and COMPASS Pathways’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avantor | 10.31% | 11.39% | 5.44% |
| COMPASS Pathways | N/A | -87.89% | -57.77% |
Summary
Avantor beats COMPASS Pathways on 9 of the 13 factors compared between the two stocks.
About Avantor
Avantor, Inc. engages in the provision of mission-critical products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips. It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and critical environment supplies. In addition, the company offers services and specialty procurements comprising onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services. Further, it provides scientific research support services, such as DNA extraction, bioreactor servicing, clinical and biorepository, and compound management services. The company was founded in 1904 and is headquartered in Radnor, Pennsylvania.
About COMPASS Pathways
COMPASS Pathways plc operates as a mental health care company in the United Kingdom and the United States. It develops COMP360, a psilocybin therapy that is in Phase III clinical trials for the treatment of treatment-resistant depression; and is in Phase II clinical trials for the treatment of post-traumatic stress disorder and anorexia nervosa. The company was formerly known as COMPASS Rx Limited and changed its name to COMPASS Pathways plc in August 2020. COMPASS Pathways plc was incorporated in 2020 and is headquartered in London, the United Kingdom.
Receive News & Ratings for Avantor Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Avantor and related companies with MarketBeat.com's FREE daily email newsletter.
