Reviewing Beauty Health (NASDAQ:SKIN) & Procter & Gamble (NYSE:PG)

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

Earnings & Valuation

This table compares Beauty Health and Procter & Gamble”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beauty Health	$300.80 million	0.30	-$9.52 million	($0.22)	-3.13
Procter & Gamble	$87.03 billion	3.88	$16.05 billion	$6.62	21.95

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

Analyst Recommendations

This is a breakdown of recent ratings for Beauty Health and Procter & Gamble, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beauty Health	1	5	1	0	2.00
Procter & Gamble	0	11	13	0	2.54

Beauty Health presently has a consensus target price of $1.38, indicating a potential upside of 99.68%. Procter & Gamble has a consensus target price of $161.19, indicating a potential upside of 10.92%. Given Beauty Health’s higher possible upside, analysts clearly believe Beauty Health is more favorable than Procter & Gamble.

Insider and Institutional Ownership

93.3% of Beauty Health shares are owned by institutional investors. Comparatively, 65.8% of Procter & Gamble shares are owned by institutional investors. 35.5% of Beauty Health shares are owned by company insiders. Comparatively, 0.2% of Procter & Gamble shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Beauty Health and Procter & Gamble’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%
Procter & Gamble	18.44%	31.36%	13.09%

Risk and Volatility

Beauty Health has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Procter & Gamble has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Summary

Procter & Gamble beats Beauty Health on 10 of the 14 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 Procter & Gamble

Procter & Gamble Co. engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances. The Health Care segment includes oral care products like toothbrushes, toothpaste, and personal health care such as gastrointestinal, rapid diagnostics, respiratory, and vitamins, minerals, and supplements. The Fabric and Home care segment consists of fabric enhancers, laundry additives and detergents, and air, dish, and surface care. The Baby, Feminine and Family Care segment sells baby wipes, diapers, and pants, adult incontinence, feminine care, paper towels, tissues, and toilet paper. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, OH.