Contrasting Dermata Therapeutics (NASDAQ:DRMA) & L’Oreal (OTCMKTS:LRLCY)

L’Oreal (OTCMKTS:LRLCY) and Dermata Therapeutics (NASDAQ:DRMA) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Risk and Volatility

L’Oreal has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Dermata Therapeutics has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.

Earnings & Valuation

This table compares L’Oreal and Dermata Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
L’Oreal	$49.83 billion	4.82	$6.93 billion	N/A	N/A
Dermata Therapeutics	N/A	N/A	-$7.56 million	($4.39)	-0.32

L’Oreal has higher revenue and earnings than Dermata Therapeutics.

Profitability

This table compares L’Oreal and Dermata Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
L’Oreal	N/A	N/A	N/A
Dermata Therapeutics	N/A	-166.66%	-130.13%

Insider and Institutional Ownership

0.4% of L’Oreal shares are held by institutional investors. Comparatively, 8.7% of Dermata Therapeutics shares are held by institutional investors. 21.9% of Dermata Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for L’Oreal and Dermata Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
L’Oreal	1	4	7	1	2.62
Dermata Therapeutics	1	0	0	0	1.00

L’Oreal presently has a consensus target price of $100.00, suggesting a potential upside of 10.79%. Given L’Oreal’s stronger consensus rating and higher probable upside, analysts plainly believe L’Oreal is more favorable than Dermata Therapeutics.

Summary

L’Oreal beats Dermata Therapeutics on 9 of the 11 factors compared between the two stocks.

About L’Oreal

L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. The company operates through four divisions: Consumer Products, L'oréal Luxe, Professional Products, and Dermatological Beauty. It offers skincare, make-up, hair colourants, haircare, perfumes, and hygiene products. The company provides its products under the L'Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Stylenanda, Essie, Dark & Lovely, Mixa, Magic Mask, Niley, Lancôme, Yves Saint Laurent, Armani, Kiehl's Since 1851, Helena Rubinstein, Biotherm, Shu Uemura, IT Cosmetics, Ralph Lauren Fragrance, Urban Decay, Mugler, Valentino, Viktor&Rolf, Azzaro, Prada, Cacharel, Maison Margela Fragrance, Diesel, Yue Sai, Atelier Colonge, Carita, Takami, Aesop, L'Oréal Professionnel Paris, Kérastase, Redken, Matrix, Pureology, Pulp Riot, La Roche-Posay, Vichy, CeraVe, SkinCeuticals, and Skinbetter Science brands. It sells its products through distribution channels, such as hair salons, local stores, e-commerce, travel retail, mass market retail, department store perfumeries, pharmacies, drug stores, medi-spas, and free-standing stores. L'Oréal S.A. was founded in 1909 and is headquartered in Clichy, France.

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.