Critical Contrast: Labcorp (NYSE:LH) & Beauty Health (NASDAQ:SKIN)

Beauty Health (NASDAQ:SKINGet Free Report) and Labcorp (NYSE:LHGet Free Report) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Profitability

This table compares Beauty Health and Labcorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Beauty Health -3.87% -20.42% -1.88%
Labcorp 6.21% 15.85% 7.35%

Analyst Ratings

This is a summary of recent recommendations and price targets for Beauty Health and Labcorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Beauty Health 1 4 1 1 2.29
Labcorp 0 4 12 0 2.75

Beauty Health presently has a consensus target price of $2.81, suggesting a potential upside of 100.89%. Labcorp has a consensus target price of $297.07, suggesting a potential upside of 17.59%. Given Beauty Health’s higher probable upside, research analysts plainly believe Beauty Health is more favorable than Labcorp.

Institutional and Insider Ownership

93.3% of Beauty Health shares are held by institutional investors. Comparatively, 95.9% of Labcorp shares are held by institutional investors. 41.0% of Beauty Health shares are held by company insiders. Comparatively, 0.8% of Labcorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Beauty Health has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Labcorp has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Valuation and Earnings

This table compares Beauty Health and Labcorp”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Beauty Health $334.30 million 0.53 -$29.10 million ($0.22) -6.36
Labcorp $13.77 billion 1.52 $746.00 million $10.18 24.82

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

Summary

Labcorp beats Beauty Health on 11 of the 15 factors compared between the two stocks.

About Beauty Health

(Get Free Report)

The Beauty Health Company designs, develops, manufactures, markets, and sells aesthetic technologies and products worldwide. The company's flagship product includes HydraFacial that enhance the skin to cleanse, extract, and hydrate the skin with proprietary solutions and serums. Its products also comprise Syndeo, a Delivery System designs to connects providers to the consumer's preferences to create a more personalized experience; consumables, such as single-use tips, solutions, and serums used to provide a hydrafacial treatment; SkinStylus SteriLock Microsystem, a microneedling device used for the treatment of enhancing appearance of surgical or traumatic hypertrophic scars on the abdomen and facial acne scarring in Fitzpatrick skin types I, II, and III; and Keravive, a treatment for scalp health. The company was founded in 1997 and is headquartered in Long Beach, California.

About Labcorp

(Get Free Report)

Labcorp Holdings, Inc. engages in providing medical testing services. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.

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