Pigeon (OTCMKTS:PGENY) and Olaplex (NASDAQ:OLPX) Financial Comparison

Pigeon (OTCMKTS:PGENY) and Olaplex (NASDAQ:OLPX) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

This table compares Pigeon and Olaplex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pigeon	9.17%	12.53%	9.66%
Olaplex	-1.18%	1.31%	0.70%

Earnings and Valuation

This table compares Pigeon and Olaplex”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pigeon	$688.99 million	1.53	$55.26 million	$0.13	17.00
Olaplex	$422.67 million	2.45	$19.52 million	N/A	N/A

Pigeon has higher revenue and earnings than Olaplex.

Institutional & Insider Ownership

87.4% of Olaplex shares are owned by institutional investors. 4.3% of Olaplex shares are owned 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.

Analyst Recommendations

This is a breakdown of current ratings for Pigeon and Olaplex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pigeon	0	0	0	0	0.00
Olaplex	2	3	1	1	2.14

Olaplex has a consensus target price of $1.85, indicating a potential upside of 19.35%. Given Olaplex’s stronger consensus rating and higher probable upside, analysts plainly believe Olaplex is more favorable than Pigeon.

Volatility and Risk

Pigeon has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500. Comparatively, Olaplex has a beta of 2.25, meaning that its share price is 125% more volatile than the S&P 500.

Summary

Olaplex beats Pigeon on 9 of the 14 factors compared between the two stocks.

About Pigeon

Pigeon Corporation, together with its subsidiaries, engages in the manufacture, sale, import, and export of baby and child-care products, maternity items, women’s care products, home healthcare products, and nursing care products in Japan and internationally. The company operates in four segments: Japan Business, China Business, Singapore Business, and Lansinoh Business. The company is involved in the provision of baby and mother care products, such as nursing bottles and nipples, toiletries, breast pads, breast pumps, nipple care products, breast milk storage bags, and breastfeeding-related products under Pigeon and Lansinoh brands. It also offers non-woven products, baby strollers, aging-prevention products, wet wipes, skincare products, cleaning and disinfecting products, and elder care products and services. In addition, the company provides child-minding and daycare services, in-home nursing care support services, outpatient care facility services, operation of in-company childcare facilities, daycare services, event childcare services, babysitter dispatch services, preschool education services, and at-home elder care services. The company was formerly known as Pigeon Honyuki Honpo Corporation and changed its name to Pigeon Corporation in 1966. Pigeon Corporation was founded in 1949 and is headquartered in Tokyo, Japan.

About Olaplex

Olaplex Holdings, Inc. develops, manufactures, and sells hair care products in the United States and internationally. The company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair, as well as oil, moisture mask, and nourishing hair serum. It provides hair care products to professional hair salons, retailers, and everyday consumers. The company distributes its products through professional distributors in salons, directly to retailers for sale in their physical stores, e-commerce sites, and its website, Olaplex.com, as well as third party e-commerce platforms. The company was founded in 2014 and is based in Santa Barbara, California.