Contrasting Dermata Therapeutics (NASDAQ:DRMA) & ODDITY Tech (NASDAQ:ODD)

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

Profitability

This table compares ODDITY Tech and Dermata Therapeutics’ 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%
Dermata Therapeutics	N/A	-127.91%	-105.05%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ODDITY Tech and Dermata Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ODDITY Tech	4	9	0	0	1.69
Dermata Therapeutics	1	0	1	0	2.00

ODDITY Tech presently has a consensus target price of $25.39, indicating a potential upside of 79.79%. Dermata Therapeutics has a consensus target price of $10.00, indicating a potential upside of 809.09%. Given Dermata Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Dermata Therapeutics is more favorable than ODDITY Tech.

Insider & Institutional Ownership

35.9% of ODDITY Tech 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 insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

ODDITY Tech has a beta of 2.38, meaning that its share price is 138% more volatile than the S&P 500. Comparatively, Dermata Therapeutics has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Earnings & Valuation

This table compares ODDITY Tech and Dermata Therapeutics”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	$809.84 million	1.00	$110.75 million	$0.79	17.87
Dermata Therapeutics	N/A	N/A	-$7.56 million	($5.31)	-0.21

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

Summary

ODDITY Tech beats Dermata Therapeutics on 9 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 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.