Beauty Health (NASDAQ:SKIN – Get Free Report) and CVS Health (NYSE:CVS – Get Free Report) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Insider & Institutional Ownership
93.3% of Beauty Health shares are held by institutional investors. Comparatively, 80.7% of CVS Health shares are held by institutional investors. 41.0% of Beauty Health shares are held by company insiders. Comparatively, 1.2% of CVS Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Beauty Health and CVS Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Beauty Health | -6.13% | -32.82% | -2.96% |
| CVS Health | 1.17% | 10.51% | 3.15% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Beauty Health | 1 | 4 | 1 | 0 | 2.00 |
| CVS Health | 0 | 4 | 19 | 2 | 2.92 |
Beauty Health currently has a consensus target price of $2.81, suggesting a potential upside of 95.31%. CVS Health has a consensus target price of $79.80, suggesting a potential upside of 2.45%. Given Beauty Health’s higher probable upside, research analysts plainly believe Beauty Health is more favorable than CVS Health.
Risk and Volatility
Beauty Health has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, CVS Health has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.
Earnings & Valuation
This table compares Beauty Health and CVS Health”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Beauty Health | $334.30 million | 0.55 | -$29.10 million | ($0.28) | -5.14 |
| CVS Health | $386.64 billion | 0.26 | $4.61 billion | $3.58 | 21.76 |
CVS Health has higher revenue and earnings than Beauty Health. Beauty Health is trading at a lower price-to-earnings ratio than CVS Health, indicating that it is currently the more affordable of the two stocks.
Summary
CVS Health beats Beauty Health on 10 of the 15 factors compared between the two stocks.
About Beauty Health
The Beauty Health Company designs, develops, manufactures, markets, and sells aesthetic technologies and products worldwide. The company's flagship product includes HydraFacial that enhance the skin to cleanse, extract, and hydrate the skin with proprietary solutions and serums. Its products also comprise Syndeo, a Delivery System designs to connects providers to the consumer's preferences to create a more personalized experience; consumables, such as single-use tips, solutions, and serums used to provide a hydrafacial treatment; SkinStylus SteriLock Microsystem, a microneedling device used for the treatment of enhancing appearance of surgical or traumatic hypertrophic scars on the abdomen and facial acne scarring in Fitzpatrick skin types I, II, and III; and Keravive, a treatment for scalp health. The company was founded in 1997 and is headquartered in Long Beach, California.
About CVS Health
CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services. It serves employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. The Health Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, specialty and mail order pharmacy, clinical, disease management, and medical spend management services. It serves employers, insurance companies, unions, government employee groups, health plans, prescription drug plans, Medicaid managed care plans, CMS, plans offered on public health insurance, and other sponsors of health benefit plans. The Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs, consumer health and beauty products, and personal care products. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings. It operates online retail pharmacy websites, LTC pharmacies and on-site pharmacies, retail specialty pharmacy stores, compounding pharmacies and branches for infusion and enteral nutrition services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was incorporated in 1996 and is headquartered in Woonsocket, Rhode Island.
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