Critical Survey: Shiseido (OTCMKTS:SSDOY) vs. Waldencast (NASDAQ:WALD)

Shiseido (OTCMKTS:SSDOY) and Waldencast (NASDAQ:WALD) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.

Volatility and Risk

Shiseido has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Waldencast has a beta of -0.46, indicating that its stock price is 146% less volatile than the S&P 500.

Earnings and Valuation

This table compares Shiseido and Waldencast”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shiseido	$6.55 billion	1.06	-$68.94 million	($0.02)	-872.00
Waldencast	$273.87 million	0.75	-$42.44 million	N/A	N/A

Waldencast has lower revenue, but higher earnings than Shiseido.

Profitability

This table compares Shiseido and Waldencast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shiseido	-0.10%	-0.15%	-0.07%
Waldencast	N/A	N/A	N/A

Institutional & Insider Ownership

0.0% of Shiseido shares are owned by institutional investors. Comparatively, 42.0% of Waldencast shares are owned by institutional investors. 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Shiseido and Waldencast, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shiseido	0	0	0	0	0.00
Waldencast	0	1	5	0	2.83

Waldencast has a consensus target price of $5.1143, suggesting a potential upside of 204.42%. Given Waldencast’s stronger consensus rating and higher possible upside, analysts plainly believe Waldencast is more favorable than Shiseido.

Summary

Waldencast beats Shiseido on 8 of the 11 factors compared between the two stocks.

About Shiseido

Shiseido Company, Limited engages in the production and sale of cosmetics in Japan and internationally. The company offers fragrances; and skincare and makeup products. It also engages in the restaurant and food, and retail businesses; and operates beauty salons. In addition, the company operates and supports SABFA, a professional hair makeup training school. Further, it offers childcare facilities. The company sells its products through department, specialized cosmetic, drug, and general merchandise stores. Shiseido Company, Limited was founded in 1872 and is headquartered in Tokyo, Japan.

About Waldencast

Waldencast plc operates in the beauty and wellness business. The company engages in developing, acquiring, accelerating, and scaling various brands. It provides cosmetic, over-the-counter, and prescription products under the Obagi Medical, Obagi Clinical, and Obagi Professional brands; and a Skintrinsiq device for use in facial treatments that is used by physicians' offices, spas, and aestheticians. The company also offers clean makeup products under the Milk Makeup brand. It sells its products to dermatologists, plastic surgeons, and other physicians who focuses on aesthetic and therapeutic skincare, including physicians on site at medical spas, through its direct sales force, as well as through distribution partners. The company is headquartered in White Plains, New York.