Compass Pathways (NASDAQ:CMPS – Get Free Report) and Labcorp (NYSE:LH – Get Free Report) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Institutional and Insider Ownership
46.2% of Compass Pathways shares are owned by institutional investors. Comparatively, 95.9% of Labcorp shares are owned by institutional investors. 2.8% of Compass Pathways shares are owned by insiders. Comparatively, 0.8% of Labcorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Compass Pathways and Labcorp”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Compass Pathways | N/A | N/A | -$287.86 million | ($3.15) | -3.60 |
| Labcorp | $13.95 billion | 1.82 | $876.50 million | $11.29 | 27.41 |
Labcorp has higher revenue and earnings than Compass Pathways. Compass Pathways is trading at a lower price-to-earnings ratio than Labcorp, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Compass Pathways and Labcorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Compass Pathways | 1 | 1 | 14 | 1 | 2.88 |
| Labcorp | 0 | 3 | 9 | 0 | 2.75 |
Compass Pathways presently has a consensus price target of $23.36, suggesting a potential upside of 105.79%. Labcorp has a consensus price target of $323.27, suggesting a potential upside of 4.46%. Given Compass Pathways’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Compass Pathways is more favorable than Labcorp.
Profitability
This table compares Compass Pathways and Labcorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Compass Pathways | N/A | -31.07% | -11.40% |
| Labcorp | 6.99% | 16.74% | 7.81% |
Volatility and Risk
Compass Pathways has a beta of 2.47, suggesting that its share price is 147% more volatile than the S&P 500. Comparatively, Labcorp has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.
Summary
Labcorp beats Compass Pathways on 8 of the 14 factors compared between the two stocks.
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.
About Labcorp
Labcorp Holdings, Inc. engages in providing medical testing services. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.
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