Medifast (NYSE:MED – Get Free Report) and ODDITY Tech (NASDAQ:ODD – Get Free Report) are both small-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.
Profitability
This table compares Medifast and ODDITY Tech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Medifast | -8.08% | -6.69% | -5.25% |
| ODDITY Tech | 6.97% | 15.38% | 4.99% |
Insider and Institutional Ownership
95.5% of Medifast shares are held by institutional investors. Comparatively, 35.9% of ODDITY Tech shares are held by institutional investors. 3.7% of Medifast shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Medifast | $385.79 million | 0.36 | -$18.67 million | ($2.33) | -5.26 |
| ODDITY Tech | $809.84 million | 1.03 | $110.75 million | $0.79 | 18.39 |
ODDITY Tech has higher revenue and earnings than Medifast. Medifast is trading at a lower price-to-earnings ratio than ODDITY Tech, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Medifast has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, ODDITY Tech has a beta of 2.38, indicating that its stock price is 138% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for Medifast and ODDITY Tech, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Medifast | 1 | 2 | 0 | 0 | 1.67 |
| ODDITY Tech | 4 | 9 | 0 | 0 | 1.69 |
Medifast currently has a consensus price target of $12.00, suggesting a potential downside of 2.12%. ODDITY Tech has a consensus price target of $25.39, suggesting a potential upside of 74.72%. Given ODDITY Tech’s stronger consensus rating and higher possible upside, analysts clearly believe ODDITY Tech is more favorable than Medifast.
Summary
ODDITY Tech beats Medifast on 11 of the 13 factors compared between the two stocks.
About Medifast
Medifast, Inc., through its subsidiaries, engages in the manufacture and sale of weight loss, weight management, and healthy living products in the United States and the Asia-Pacific. It offers bars, puffs, cereal, crunchers, drinks, hearty choices, oatmeal, pancakes, pudding, soft serve, shakes, smoothies, soft bakes, and soups under the OPTAVIA, OPTAVIA ACTIVE, and Optimal Health brand names. The company markets its products through point-of-sale transactions, as well as through ecommerce platform. Medifast, Inc. was founded in 1980 and is headquartered in Baltimore, Maryland.
About ODDITY Tech
Oddity Tech Ltd. operates as a consumer tech company that builds digital-first brands for the beauty and wellness industries in the United States and internationally. It serves consumers worldwide through its AI-driven online platform, which uses data science, machine learning, and computer vision capabilities to identify consumer needs, and develop solutions in the form of beauty and wellness products. The company sells beauty, hair, and skin products under the IL MAKIAGE and SpoiledChild brands. In addition, it operates ODDITY LABS, a biotechnology center, which develops various ingredients, including novel molecules, probiotics, and peptides for beauty and wellness products. Oddity Tech Ltd. was incorporated in 2013 and is headquartered in Tel Aviv, Israel.
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