Analyzing Haleon (NYSE:HLN) and Beauty Health (NASDAQ:SKIN)

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Beauty Health and Haleon, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beauty Health	1	5	1	0	2.00
Haleon	2	4	3	2	2.45

Beauty Health currently has a consensus price target of $1.38, suggesting a potential upside of 109.60%. Given Beauty Health’s higher probable upside, analysts clearly believe Beauty Health is more favorable than Haleon.

Risk and Volatility

Beauty Health has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Haleon has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500.

Profitability

This table compares Beauty Health and Haleon’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%
Haleon	N/A	N/A	N/A

Insider and Institutional Ownership

93.3% of Beauty Health shares are held by institutional investors. Comparatively, 6.7% of Haleon shares are held by institutional investors. 40.3% of Beauty Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Beauty Health and Haleon”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	0.28	-$9.52 million	($0.22)	-2.98
Haleon	$14.54 billion	2.97	$2.20 billion	$0.39	25.12

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

Summary

Haleon beats Beauty Health on 11 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 Haleon

Haleon plc, together with its subsidiaries, engages in the research, development, manufacture, and sale of various consumer healthcare products in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. The company provides oral health products, such as toothpastes, mouth washes, and denture care products under the Sensodyne, Polident, Parodontax, Biotene brands; and vitamins, minerals, and supplements under Centrum, Emergen-C, Caltrate brands. It also offers various over-the-counter products comprising nasal drops, and cold, flu, and allergy relief products under Otrivine, Theraflu, and Flonase brands for respiratory issues; anti-inflammatory and pain relief products under Voltaren, Panadol, and Advil brands; and antacids and antihistamine products under TUMS, ENO, and Fenistil brands for digestive health and other issues. The company was formerly known as DRVW 2022 plc and changed its name to Haleon plc in February 2022. Haleon plc was founded in 1715 and is headquartered in Weybridge, the United Kingdom.