Financial Review: Labcorp (NYSE:LH) & Compass Pathways (NASDAQ:CMPS)

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

Insider & Institutional Ownership

46.2% of Compass Pathways shares are held by institutional investors. Comparatively, 95.9% of Labcorp shares are held by institutional investors. 2.8% of Compass Pathways shares are held by insiders. Comparatively, 0.8% of Labcorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Compass Pathways and Labcorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Compass Pathways 1 1 14 1 2.88
Labcorp 0 2 8 0 2.80

Compass Pathways presently has a consensus target price of $23.36, suggesting a potential upside of 107.25%. Labcorp has a consensus target price of $315.33, suggesting a potential upside of 4.75%. Given Compass Pathways’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Compass Pathways is more favorable than Labcorp.

Valuation & Earnings

This table compares Compass Pathways and Labcorp”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Compass Pathways N/A N/A -$287.86 million ($3.15) -3.58
Labcorp $13.95 billion 1.77 $876.50 million $11.29 26.66

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

Profitability

This table compares Compass Pathways and Labcorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Compass Pathways N/A -31.07% -11.40%
Labcorp 6.66% 16.29% 7.62%

Volatility & Risk

Compass Pathways has a beta of 2.47, indicating that its stock price is 147% more volatile than the S&P 500. Comparatively, Labcorp has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Summary

Labcorp beats Compass Pathways on 8 of the 14 factors compared between the two stocks.

About Compass Pathways

(Get Free Report)

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.

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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