Comparing Stevanato Group (NYSE:STVN) and Journey Medical (NASDAQ:DERM)

Journey Medical (NASDAQ:DERM) and Stevanato Group (NYSE:STVN) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

7.2% of Journey Medical shares are held by institutional investors. 14.5% of Journey Medical shares are held by company insiders. Comparatively, 0.7% of Stevanato Group shares are held by company 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

This table compares Journey Medical and Stevanato Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Journey Medical	-14.82%	-35.57%	-10.88%
Stevanato Group	11.76%	10.27%	6.08%

Valuation & Earnings

This table compares Journey Medical and Stevanato Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Journey Medical	$61.86 million	3.16	-$11.43 million	($0.37)	-19.16
Stevanato Group	$1.34 billion	4.28	$158.21 million	€0.59	32.18

Stevanato Group has higher revenue and earnings than Journey Medical. Journey Medical is trading at a lower price-to-earnings ratio than Stevanato Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Journey Medical and Stevanato Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Journey Medical	1	1	2	0	2.25
Stevanato Group	1	1	2	2	2.83

Journey Medical currently has a consensus target price of $13.00, indicating a potential upside of 83.36%. Given Journey Medical’s higher possible upside, research analysts clearly believe Journey Medical is more favorable than Stevanato Group.

Volatility and Risk

Journey Medical has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Stevanato Group has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Summary

Stevanato Group beats Journey Medical on 10 of the 14 factors compared between the two stocks.

About Journey Medical

Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant nodular acne; and Amzeeq, a topical formulation of minocycline for the treatment of inflammatory lesions of non-nodular moderate to severe acne vulgaris. It also offers Zilxi, a topical minocycline treatment for inflammatory lesions of rosacea; Exelderm cream and solution an antifungal intended for topical use; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; and Luxamend, a water-based emulsion formulated to provide a moist healing environment for superficial wounds; minor cuts or scrapes; dermal ulcers; donor sites; first- and second-degree burns, including sunburns; and radiation dermatitis. In addition, the company sells sulconazole nitrate cream and solution indicated for the treatment of tinea cruris, tinea corporis, and tinea versicolor; and doxycycline hyclate tablets, as an adjunctive therapy for severe acne. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona. Journey Medical Corporation is a subsidiary of Fortress Biotech, Inc.

About Stevanato Group

Stevanato Group S.p.A. engages in the design, production, and distribution of products and processes to provide integrated solutions for bio-pharma and healthcare industries in Europe, the Middle East, Africa, North America, South America, and the Asia Pacific. The company operates in two segments, Biopharmaceutical and Diagnostic Solutions; and Engineering. Its principal products include containment solutions, drug delivery systems, medical devices, diagnostic, analytical services, visual inspection machines, assembling and packaging machines, and glass forming machines. The company was founded in 1949 and is headquartered in Piombino Dese, Italy. Stevanato Group S.p.A. is a subsidiary of Stevanato Holding S.R.L.