European Wax Center (NASDAQ:EWCZ) and Waldencast (NASDAQ:WALD) Head to Head Survey

European Wax Center (NASDAQ:EWCZ) and Waldencast (NASDAQ:WALD) are both small-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Earnings & Valuation

This table compares European Wax Center and Waldencast”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
European Wax Center	$216.92 million	1.02	$10.46 million	$0.20	20.05
Waldencast	$273.87 million	0.82	-$42.44 million	N/A	N/A

European Wax Center has higher earnings, but lower revenue than Waldencast.

Institutional & Insider Ownership

82.1% of European Wax Center shares are owned by institutional investors. Comparatively, 42.0% of Waldencast shares are owned by institutional investors. 5.0% of European Wax Center shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

European Wax Center has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Waldencast has a beta of -0.46, suggesting that its share price is 146% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for European Wax Center and Waldencast, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
European Wax Center	1	4	1	0	2.00
Waldencast	0	1	5	0	2.83

European Wax Center presently has a consensus target price of $6.93, suggesting a potential upside of 72.78%. Waldencast has a consensus target price of $4.97, suggesting a potential upside of 171.66%. Given Waldencast’s stronger consensus rating and higher probable upside, analysts plainly believe Waldencast is more favorable than European Wax Center.

Profitability

This table compares European Wax Center and Waldencast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
European Wax Center	4.20%	28.38%	3.93%
Waldencast	N/A	N/A	N/A

Summary

European Wax Center beats Waldencast on 8 of the 12 factors compared between the two stocks.

About European Wax Center

European Wax Center, Inc. operates as the franchisor and operator of out-of-home waxing services in the United States. It offers body and facial waxing services; and pre- and post-service products, including ingrown hair serums, exfoliating gels, brow shapers, and skin treatments. The company was founded in 2004 and is headquartered in Plano, Texas.

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.