Comparing Dermata Therapeutics (NASDAQ:DRMA) and Yatsen (NYSE:YSG)

Dermata Therapeutics (NASDAQ:DRMA) and Yatsen (NYSE:YSG) are both small-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Institutional and Insider Ownership

8.7% of Dermata Therapeutics shares are owned by institutional investors. 21.9% of Dermata Therapeutics shares are owned by insiders. Comparatively, 29.0% of Yatsen shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Dermata Therapeutics and Yatsen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dermata Therapeutics	N/A	-127.91%	-105.05%
Yatsen	-3.04%	-4.54%	-3.49%

Volatility and Risk

Dermata Therapeutics has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Yatsen has a beta of -1.57, indicating that its stock price is 257% less volatile than the S&P 500.

Earnings and Valuation

This table compares Dermata Therapeutics and Yatsen”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dermata Therapeutics	N/A	N/A	-$7.56 million	($5.31)	-0.22
Yatsen	$614.62 million	0.53	-$11.56 million	($0.21)	-16.40

Dermata Therapeutics has higher earnings, but lower revenue than Yatsen. Yatsen is trading at a lower price-to-earnings ratio than Dermata Therapeutics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Dermata Therapeutics and Yatsen, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dermata Therapeutics	1	0	1	0	2.00
Yatsen	1	0	0	0	1.00

Dermata Therapeutics currently has a consensus price target of $10.00, suggesting a potential upside of 754.70%. Given Dermata Therapeutics’ stronger consensus rating and higher probable upside, research analysts clearly believe Dermata Therapeutics is more favorable than Yatsen.

Summary

Dermata Therapeutics beats Yatsen on 8 of the 13 factors compared between the two stocks.

About Dermata Therapeutics

Dermata Therapeutics, Inc., a late-stage medical dermatology company, focuses on identifying, developing, and commercializing pharmaceutical product candidates for the treatment of medical and aesthetic skin conditions and diseases. The company's lead product candidate is DMT310, which has completed Phase IIb clinical trial for treatment of moderate-to-severe acne; and Phase Ib proof of concept (POC) trial for Mild-to-Moderate Psoriasis, as well as is in a Phase 2 clinical trial for treatment of moderate-to-severe rosacea. It is also developing DMT410 that has completed Phase Ib POC trials for the treatment of anxillary hyperhidrosis and aesthetic conditions. Dermata Therapeutics, Inc. was incorporated in 2014 and is headquartered in San Diego, California.

About Yatsen

Yatsen Holding Limited, together with its subsidiaries, engages in the development and sale of beauty products under the Perfect Diary, Little Ondine, Pink Bear, Abby’s Choice, GalÃnic, DR.WU, Eve Lom, and EANTiM brands in the People’s Republic of China. The company offers color cosmetics for lips, eyes, and face; skin care products, including face serums and creams, eye creams, masks, toners, makeup removers, cleansers, ampoules, and anti-acne patches; and beauty tools and kits, sunscreen products, and beauty devices. It sells its products through stores and online channel. The company was formerly known as Mangrove Bay Ecommerce Holding (Cayman) and changed its name to Yatsen Holding Limited in January 2019. Yatsen Holding Limited was founded in 2016 and is headquartered in Guangzhou, China.