COMPASS Pathways (NASDAQ:CMPS – Get Free Report) and Beauty Health (NASDAQ:SKIN – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for COMPASS Pathways and Beauty Health, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| COMPASS Pathways | 1 | 1 | 7 | 0 | 2.67 |
| Beauty Health | 1 | 5 | 1 | 0 | 2.00 |
COMPASS Pathways presently has a consensus target price of $15.88, indicating a potential upside of 202.96%. Beauty Health has a consensus target price of $2.81, indicating a potential upside of 88.76%. Given COMPASS Pathways’ stronger consensus rating and higher possible upside, equities analysts clearly believe COMPASS Pathways is more favorable than Beauty Health.
Volatility and Risk
Profitability
This table compares COMPASS Pathways and Beauty Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| COMPASS Pathways | N/A | -111.18% | -56.55% |
| Beauty Health | -3.87% | -19.70% | -1.97% |
Earnings and Valuation
This table compares COMPASS Pathways and Beauty Health”s top-line 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 | -$155.12 million | ($2.72) | -1.93 |
| Beauty Health | $301.92 million | 0.63 | -$29.10 million | ($0.22) | -6.77 |
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.
Insider & Institutional Ownership
46.2% of COMPASS Pathways shares are held by institutional investors. Comparatively, 93.3% of Beauty Health shares are held by institutional investors. 3.9% of COMPASS Pathways shares are held by company insiders. Comparatively, 41.0% of Beauty Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Beauty Health beats COMPASS Pathways on 7 of the 13 factors compared between the two stocks.
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.
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.
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