Beauty Health (NASDAQ:SKIN – Get Free Report) and COMPASS Pathways (NASDAQ:CMPS – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Beauty Health and COMPASS Pathways, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Beauty Health | 1 | 5 | 1 | 0 | 2.00 |
| COMPASS Pathways | 1 | 1 | 7 | 0 | 2.67 |
Beauty Health currently has a consensus price target of $2.81, indicating a potential upside of 91.33%. COMPASS Pathways has a consensus price target of $15.88, indicating a potential upside of 185.27%. Given COMPASS Pathways’ stronger consensus rating and higher possible upside, analysts plainly believe COMPASS Pathways is more favorable than Beauty Health.
Insider and Institutional Ownership
Profitability
This table compares Beauty Health and COMPASS Pathways’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Beauty Health | -3.87% | -19.70% | -1.97% |
| COMPASS Pathways | N/A | -111.18% | -56.55% |
Volatility and Risk
Beauty Health has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, COMPASS Pathways has a beta of 2.22, indicating that its share price is 122% more volatile than the S&P 500.
Earnings and Valuation
This table compares Beauty Health and COMPASS Pathways”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Beauty Health | $334.30 million | 0.56 | -$29.10 million | ($0.22) | -6.68 |
| COMPASS Pathways | N/A | N/A | -$155.12 million | ($2.72) | -2.05 |
Beauty Health has higher revenue and earnings than COMPASS Pathways. Beauty Health is trading at a lower price-to-earnings ratio than COMPASS Pathways, indicating that it is currently the more affordable of the two stocks.
Summary
Beauty Health beats COMPASS Pathways on 7 of the 13 factors compared between the two stocks.
About Beauty Health
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 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.
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