Bausch + Lomb (NYSE:BLCO – Get Free Report) and Fractyl Health (NASDAQ:GUTS – 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 earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.
Volatility and Risk
Bausch + Lomb has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Fractyl Health has a beta of 2.9, suggesting that its stock price is 190% more volatile than the S&P 500.
Profitability
This table compares Bausch + Lomb and Fractyl Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bausch + Lomb | -2.05% | 5.01% | 2.34% |
| Fractyl Health | N/A | -1,362.10% | -84.89% |
Earnings & Valuation
This table compares Bausch + Lomb and Fractyl Health”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bausch + Lomb | $5.42 billion | 1.41 | -$360.00 million | ($0.31) | -68.87 |
| Fractyl Health | $90,000.00 | 129.83 | -$140.95 million | ($10.56) | -0.08 |
Fractyl Health has lower revenue, but higher earnings than Bausch + Lomb. Bausch + Lomb is trading at a lower price-to-earnings ratio than Fractyl Health, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Bausch + Lomb and Fractyl Health, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bausch + Lomb | 1 | 8 | 4 | 2 | 2.47 |
| Fractyl Health | 1 | 1 | 3 | 0 | 2.40 |
Bausch + Lomb currently has a consensus price target of $20.83, suggesting a potential downside of 2.42%. Fractyl Health has a consensus price target of $50.25, suggesting a potential upside of 5,602.45%. Given Fractyl Health’s higher probable upside, analysts plainly believe Fractyl Health is more favorable than Bausch + Lomb.
Institutional & Insider Ownership
11.1% of Bausch + Lomb shares are held by institutional investors. 1.5% of Bausch + Lomb shares are held by company insiders. Comparatively, 8.4% of Fractyl Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Bausch + Lomb beats Fractyl Health on 8 of the 14 factors compared between the two stocks.
About Bausch + Lomb
Bausch + Lomb Corporation is an eye-health company that develops, manufactures and markets products for consumers, eye-care professionals and surgical teams. Its business spans vision care, pharmaceuticals and surgical devices. Its products include contact lenses and lens-care solutions, as well as eye-health medicines and nutritional supplements. The company also supplies equipment, technologies and related products used in eye surgery and other ophthalmic procedures. Founded in Rochester, New York, in 1853 by John Jacob Bausch and Henry Lomb, the company serves customers in more than 100 countries.
About Fractyl Health
Fractyl Health, Inc. is a biotechnology company focused on developing therapies for metabolic diseases, including obesity and type 2 diabetes. The company aims to create treatments that address the underlying biology of these conditions and provide longer-lasting alternatives to frequently administered medicines. Fractyl Health’s technology platforms include Revita, an endoscopic procedure designed to modify the lining of the duodenum and potentially improve metabolic function, and a gene therapy platform intended to enable the body to produce therapeutic levels of metabolic hormones such as glucagon-like peptide-1 (GLP-1).
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