Beauty Health (NASDAQ:SKIN – Get Free Report) and Dermata Therapeutics (NASDAQ:DRMA – Get Free Report) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.
Analyst Recommendations
This is a summary of recent ratings for Beauty Health and Dermata Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Beauty Health | 1 | 5 | 1 | 0 | 2.00 |
| Dermata Therapeutics | 1 | 0 | 0 | 0 | 1.00 |
Beauty Health presently has a consensus price target of $1.38, indicating a potential upside of 94.51%. Given Beauty Health’s stronger consensus rating and higher probable upside, research analysts clearly believe Beauty Health is more favorable than Dermata Therapeutics.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Beauty Health | -9.79% | -47.83% | -5.79% |
| Dermata Therapeutics | N/A | -166.66% | -130.13% |
Valuation and Earnings
This table compares Beauty Health and Dermata Therapeutics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Beauty Health | $300.80 million | 0.31 | -$9.52 million | ($0.22) | -3.21 |
| Dermata Therapeutics | N/A | N/A | -$7.56 million | ($4.39) | -0.29 |
Dermata Therapeutics has lower revenue, but higher earnings than Beauty Health. Beauty Health is trading at a lower price-to-earnings ratio than Dermata Therapeutics, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Beauty Health has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Dermata Therapeutics has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.
Insider & Institutional Ownership
93.3% of Beauty Health shares are owned by institutional investors. Comparatively, 8.7% of Dermata Therapeutics shares are owned by institutional investors. 35.5% of Beauty Health shares are owned by company insiders. Comparatively, 21.9% of Dermata Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Beauty Health beats Dermata Therapeutics on 10 of the 13 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 Dermata Therapeutics
Dermata Therapeutics, Inc., a late-stage medical dermatology company, focuses on identifying, developing, and commercializing pharmaceutical product candidates for the treatment of medical and aesthetic skin conditions and diseases. The company's lead product candidate is DMT310, which has completed Phase IIb clinical trial for treatment of moderate-to-severe acne; and Phase Ib proof of concept (POC) trial for Mild-to-Moderate Psoriasis, as well as is in a Phase 2 clinical trial for treatment of moderate-to-severe rosacea. It is also developing DMT410 that has completed Phase Ib POC trials for the treatment of anxillary hyperhidrosis and aesthetic conditions. Dermata Therapeutics, Inc. was incorporated in 2014 and is headquartered in San Diego, California.
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