e.l.f. Beauty (NYSE:ELF) & Beauty Health (NASDAQ:SKIN) Head-To-Head Comparison

Beauty Health (NASDAQ:SKIN) and e.l.f. Beauty (NYSE:ELF) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Profitability

This table compares Beauty Health and e.l.f. Beauty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beauty Health	-9.79%	-47.83%	-5.79%
e.l.f. Beauty	3.38%	14.07%	6.81%

Earnings & Valuation

This table compares Beauty Health and e.l.f. Beauty”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beauty Health	$300.80 million	0.27	-$9.52 million	($0.22)	-2.86
e.l.f. Beauty	$1.76 billion	3.51	$26.32 million	$1.00	104.73

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.

Volatility and Risk

Beauty Health has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, e.l.f. Beauty has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.

Institutional & Insider Ownership

93.3% of Beauty Health shares are owned by institutional investors. Comparatively, 92.4% of e.l.f. Beauty shares are owned by institutional investors. 35.5% of Beauty Health shares are owned by company insiders. Comparatively, 3.5% of e.l.f. Beauty shares are owned by company 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.

Analyst Ratings

This is a summary of recent ratings and price targets for Beauty Health and e.l.f. Beauty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beauty Health	1	5	1	0	2.00
e.l.f. Beauty	1	6	10	1	2.61

Beauty Health presently has a consensus price target of $1.38, indicating a potential upside of 118.25%. e.l.f. Beauty has a consensus price target of $99.00, indicating a potential downside of 5.47%. Given Beauty Health’s higher probable upside, equities analysts clearly believe Beauty Health is more favorable than e.l.f. Beauty.

Summary

e.l.f. Beauty beats Beauty Health on 12 of the 15 factors compared between the two stocks.

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.

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.