LifeMD (NASDAQ:LFMD) vs. COMPASS Pathways (NASDAQ:CMPS) Head to Head Contrast

LifeMD (NASDAQ:LFMD) and COMPASS Pathways (NASDAQ:CMPS) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Volatility and Risk

LifeMD has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500. Comparatively, COMPASS Pathways has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500.

Institutional & Insider Ownership

35.5% of LifeMD shares are held by institutional investors. Comparatively, 46.2% of COMPASS Pathways shares are held by institutional investors. 18.4% of LifeMD shares are held by insiders. Comparatively, 3.9% of COMPASS Pathways shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares LifeMD and COMPASS Pathways’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LifeMD	-1.82%	N/A	-6.44%
COMPASS Pathways	N/A	-111.18%	-56.55%

Analyst Ratings

This is a summary of current ratings and target prices for LifeMD and COMPASS Pathways, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LifeMD	1	2	6	0	2.56
COMPASS Pathways	1	1	7	0	2.67

LifeMD currently has a consensus price target of $9.25, indicating a potential upside of 230.36%. COMPASS Pathways has a consensus price target of $16.11, indicating a potential upside of 175.40%. Given LifeMD’s higher possible upside, equities analysts clearly believe LifeMD is more favorable than COMPASS Pathways.

Valuation & Earnings

This table compares LifeMD and COMPASS Pathways”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LifeMD	$212.45 million	0.63	-$18.88 million	($0.17)	-16.47
COMPASS Pathways	N/A	N/A	-$155.12 million	($2.72)	-2.15

LifeMD has higher revenue and earnings than COMPASS Pathways. LifeMD 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

LifeMD beats COMPASS Pathways on 7 of the 13 factors compared between the two stocks.

About LifeMD

LifeMD, Inc. operates as a direct-to-patient telehealth company that connects consumers to healthcare professionals for medical care in the United States. The company offers telehealth platform comprising RexMD, a men's telehealth brand that provides access to virtual medical treatment for a variety of men's health needs from licensed physician; ShapiroMD that provides virtual medical treatment, prescription medications, patented doctor formulated OTC products, topical compounded medications, and medical devices treating male and female hair loss; NavaMD, a female-oriented tele-dermatology that offers virtual medical treatment from dermatologists and other providers; and prescription oral and compounded topical medications to treat aging and acne; and Cleared which provides personalized treatments for allergy, asthma and immunology, including in-home tests for both environmental and food allergies, prescriptions for allergies and asthma and immunotherapies for treating chronic allergies. It also provides LifeMD PC, a direct-to-consumer virtual primary care which includes 24/7 access to a provider for their primary care, urgent care, and chronic care needs; and offers virtual consultations and treatment, prescription medications, diagnostics and imaging, wellness coaching, and more. In addition, the company offers PDFSimpli, an online software as a service platform that allows users to create, edit, convert, sign, and share PDF documents; ResumeBuild which provides digital resume and cover letter services; SignSimpli, a digital signature platform; and LegalSimpli, a provider of legal forms for consumers and small businesses. It sells its products directly to consumers and through e-commerce platforms, as well as through third party partner channels. The company was formerly known as Conversion Labs, Inc. and changed its name to LifeMD, Inc. in February 2021. LifeMD, Inc. was incorporated in 1994 and is headquartered in New York, New York.

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.