Critical Survey: Beauty Health (NASDAQ:SKIN) versus Dermata Therapeutics (NASDAQ:DRMAW)

Beauty Health (NASDAQ:SKIN) and Dermata Therapeutics (NASDAQ:DRMAW) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Institutional and Insider Ownership

93.3% of Beauty Health shares are held by institutional investors. 40.3% of Beauty Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Beauty Health and Dermata Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beauty Health	1	5	1	0	2.00
Dermata Therapeutics	0	0	0	0	0.00

Beauty Health currently has a consensus target price of $1.52, suggesting a potential upside of 130.71%. Given Beauty Health’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Beauty Health is more favorable than Dermata Therapeutics.

Earnings and Valuation

This table compares Beauty Health 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
Beauty Health	$300.80 million	0.28	-$9.52 million	($0.17)	-3.89
Dermata Therapeutics	N/A	N/A	N/A	N/A	N/A

Dermata Therapeutics has lower revenue, but higher earnings than Beauty Health.

Profitability

This table compares Beauty Health and Dermata Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beauty Health	-9.79%	-46.83%	-5.77%
Dermata Therapeutics	N/A	N/A	N/A

Summary

Beauty Health beats Dermata Therapeutics on 6 of the 9 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 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.