Analyzing Medifast (NYSE:MED) & ODDITY Tech (NASDAQ:ODD)

ODDITY Tech (NASDAQ:ODD) and Medifast (NYSE:MED) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Volatility and Risk

ODDITY Tech has a beta of 2.38, indicating that its share price is 138% more volatile than the S&P 500. Comparatively, Medifast has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Profitability

This table compares ODDITY Tech and Medifast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ODDITY Tech	6.97%	15.38%	4.99%
Medifast	-8.08%	-6.69%	-5.25%

Valuation & Earnings

This table compares ODDITY Tech and Medifast”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ODDITY Tech	$739.71 million	1.12	$110.75 million	$0.79	18.22
Medifast	$385.79 million	0.37	-$18.67 million	($2.33)	-5.48

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

Insider & Institutional Ownership

35.9% of ODDITY Tech shares are held by institutional investors. Comparatively, 95.5% of Medifast shares are held by institutional investors. 3.7% of Medifast shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for ODDITY Tech and Medifast, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ODDITY Tech	4	9	0	0	1.69
Medifast	1	2	0	0	1.67

ODDITY Tech presently has a consensus target price of $25.75, suggesting a potential upside of 78.88%. Medifast has a consensus target price of $12.00, suggesting a potential downside of 6.01%. Given ODDITY Tech’s stronger consensus rating and higher probable upside, analysts plainly believe ODDITY Tech is more favorable than Medifast.

Summary

ODDITY Tech beats Medifast on 11 of the 13 factors compared between the two stocks.

About ODDITY Tech

Oddity Tech Ltd. operates as a consumer tech company that builds digital-first brands for the beauty and wellness industries in the United States and internationally. It serves consumers worldwide through its AI-driven online platform, which uses data science, machine learning, and computer vision capabilities to identify consumer needs, and develop solutions in the form of beauty and wellness products. The company sells beauty, hair, and skin products under the IL MAKIAGE and SpoiledChild brands. In addition, it operates ODDITY LABS, a biotechnology center, which develops various ingredients, including novel molecules, probiotics, and peptides for beauty and wellness products. Oddity Tech Ltd. was incorporated in 2013 and is headquartered in Tel Aviv, Israel.

About Medifast

Medifast, Inc., through its subsidiaries, engages in the manufacture and sale of weight loss, weight management, and healthy living products in the United States and the Asia-Pacific. It offers bars, puffs, cereal, crunchers, drinks, hearty choices, oatmeal, pancakes, pudding, soft serve, shakes, smoothies, soft bakes, and soups under the OPTAVIA, OPTAVIA ACTIVE, and Optimal Health brand names. The company markets its products through point-of-sale transactions, as well as through ecommerce platform. Medifast, Inc. was founded in 1980 and is headquartered in Baltimore, Maryland.