Head to Head Comparison: Solesence (NASDAQ:SLSN) & e.l.f. Beauty (NYSE:ELF)

Solesence (NASDAQ:SLSN) and e.l.f. Beauty (NYSE:ELF) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Volatility and Risk

Solesence has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, e.l.f. Beauty has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.

Valuation & Earnings

This table compares Solesence and e.l.f. Beauty”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solesence	$52.35 million	4.42	$4.24 million	$0.07	46.86
e.l.f. Beauty	$1.31 billion	6.48	$112.09 million	$1.70	84.44

e.l.f. Beauty has higher revenue and earnings than Solesence. Solesence is trading at a lower price-to-earnings ratio than e.l.f. Beauty, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

70.2% of Solesence shares are owned by institutional investors. Comparatively, 92.4% of e.l.f. Beauty shares are owned by institutional investors. 4.8% of Solesence shares are owned by company insiders. Comparatively, 3.9% of e.l.f. Beauty shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Solesence and e.l.f. Beauty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solesence	8.13%	32.99%	9.74%
e.l.f. Beauty	7.29%	16.36%	9.89%

Analyst Recommendations

This is a breakdown of recent ratings for Solesence and e.l.f. Beauty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solesence	0	0	0	0	0.00
e.l.f. Beauty	0	4	9	2	2.87

e.l.f. Beauty has a consensus target price of $131.73, indicating a potential downside of 8.23%. Given e.l.f. Beauty’s stronger consensus rating and higher possible upside, analysts clearly believe e.l.f. Beauty is more favorable than Solesence.

Summary

e.l.f. Beauty beats Solesence on 12 of the 15 factors compared between the two stocks.

About Solesence

Nanophase Technologies Corporation provides engineered materials, formulation development, and commercial manufacturing with an integrated family of technologies in the United States. It offers surface engineered zinc oxide and titanium dioxide for sunscreens and personal care products; fully formulated cosmetics, sun care, and skin care under the Solésence brand name; and advanced materials products, such as architectural coatings, industrial coatings, abrasion-resistant additives, plastics additives, medical diagnostics, and various surface finishing technologies applications. The company was incorporated in 1989 and is headquartered in Romeoville, Illinois.

About e.l.f. Beauty

e.l.f. Beauty, Inc. is a holding company, which engages in the provision of inclusive, accessible, clean, vegan and cruelty free cosmetics and skin care products. The company focuses on the e-commerce, national retailers and international business channels. Its brands include elf, elf skin, WELL People and KEYS soulcare. The company was founded in 2004 and is headquartered in Oakland, CA.