Contrasting COMPASS Pathways (NASDAQ:CMPS) & Cencora (NYSE:COR)

COMPASS Pathways (NASDAQ:CMPS) and Cencora (NYSE:COR) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Valuation and Earnings

This table compares COMPASS Pathways and Cencora”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
COMPASS Pathways	N/A	N/A	-$155.12 million	($1.99)	-1.39
Cencora	$293.96 billion	0.20	$1.51 billion	$8.62	34.77

Cencora has higher revenue and earnings than COMPASS Pathways. COMPASS Pathways is trading at a lower price-to-earnings ratio than Cencora, 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 COMPASS Pathways and Cencora, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
COMPASS Pathways	0	1	6	0	2.86
Cencora	0	1	9	0	2.90

COMPASS Pathways presently has a consensus target price of $17.00, suggesting a potential upside of 513.72%. Cencora has a consensus target price of $306.91, suggesting a potential upside of 2.40%. Given COMPASS Pathways’ higher possible upside, analysts plainly believe COMPASS Pathways is more favorable than Cencora.

Profitability

This table compares COMPASS Pathways and Cencora’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
COMPASS Pathways	N/A	-81.75%	-59.42%
Cencora	0.55%	344.71%	4.26%

Risk & Volatility

COMPASS Pathways has a beta of 2.25, indicating that its stock price is 125% more volatile than the S&P 500. Comparatively, Cencora has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.

Insider and Institutional Ownership

46.2% of COMPASS Pathways shares are owned by institutional investors. Comparatively, 97.5% of Cencora shares are owned by institutional investors. 3.9% of COMPASS Pathways shares are owned by company insiders. Comparatively, 10.8% of Cencora shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Cencora beats COMPASS Pathways on 11 of the 13 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 Cencora

Cencora, Inc. sources and distributes pharmaceutical products. The company's U.S. Healthcare Solutions segment distributes pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers; provides pharmacy management, staffing, and other consulting services; supply management software to retail and institutional healthcare providers; packaging solutions to various institutional and retail healthcare providers; clinical trial support, product post-approval, and commercialization support services; data analytics, outcomes research, and additional services for biotechnology and pharmaceutical manufacturers; pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, and other products to the companion animal and production animal markets; and sales force services to manufacturers. This segment also distributes plasma and other blood products, injectable pharmaceuticals, vaccines, and other specialty products; and provides other services to physicians who specialize in various disease states, such as oncology, as well as to other healthcare providers, including hospitals and dialysis clinics. Its International Healthcare Solutions segment offers international pharmaceutical wholesale and related service, and global commercialization services; distributes pharmaceuticals, other healthcare products, and related services to pharmacies, doctors, health centers, and hospitals primarily in Europe; and provides specialty transportation and logistics services for the biopharmaceutical industry. The company was formerly known as AmerisourceBergen Corporation and changed its name to Cencora, Inc. in August 2023. Cencora, Inc. was incorporated in 2001 and is headquartered in Conshohocken, Pennsylvania.