e.l.f. Beauty (NYSE:ELF – Get Free Report) and Beauty Health (NASDAQ:SKIN – Get Free Report) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Volatility and Risk
e.l.f. Beauty has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Beauty Health has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.
Insider & Institutional Ownership
92.4% of e.l.f. Beauty shares are owned by institutional investors. Comparatively, 93.3% of Beauty Health shares are owned by institutional investors. 3.5% of e.l.f. Beauty shares are owned by insiders. Comparatively, 35.5% of Beauty Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| e.l.f. Beauty | 3.38% | 14.07% | 6.81% |
| Beauty Health | -9.79% | -47.83% | -5.79% |
Analyst Ratings
This is a summary of current ratings for e.l.f. Beauty and Beauty Health, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| e.l.f. Beauty | 1 | 6 | 10 | 1 | 2.61 |
| Beauty Health | 1 | 5 | 1 | 0 | 2.00 |
e.l.f. Beauty currently has a consensus price target of $97.12, suggesting a potential downside of 2.63%. Beauty Health has a consensus price target of $1.38, suggesting a potential upside of 106.83%. Given Beauty Health’s higher possible upside, analysts plainly believe Beauty Health is more favorable than e.l.f. Beauty.
Earnings and Valuation
This table compares e.l.f. Beauty and Beauty Health”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| e.l.f. Beauty | $1.64 billion | 3.60 | $26.32 million | $1.00 | 99.75 |
| Beauty Health | $300.80 million | 0.29 | -$9.52 million | ($0.22) | -3.02 |
e.l.f. Beauty has higher revenue and earnings than Beauty Health. Beauty Health is trading at a lower price-to-earnings ratio than e.l.f. Beauty, indicating that it is currently the more affordable of the two stocks.
Summary
e.l.f. Beauty beats Beauty Health on 12 of the 15 factors compared between the two stocks.
About e.l.f. Beauty
e.l.f. Beauty, Inc. is a holding company, which engages in the provision of inclusive, accessible, clean, vegan and cruelty free cosmetics and skin care products. The company focuses on the e-commerce, national retailers and international business channels. Its brands include elf, elf skin, WELL People and KEYS soulcare. The company was founded in 2004 and is headquartered in Oakland, CA.
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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