Evolus (NASDAQ:EOLS – Get Free Report) and Ascend Wellness (OTCMKTS:AAWH – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
Profitability
This table compares Evolus and Ascend Wellness’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Evolus | -9.56% | N/A | -11.73% |
| Ascend Wellness | -23.31% | N/A | -10.85% |
Valuation & Earnings
This table compares Evolus and Ascend Wellness”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Evolus | $297.18 million | 1.55 | -$51.64 million | ($0.47) | -14.85 |
| Ascend Wellness | $500.58 million | 0.15 | -$118.19 million | ($0.57) | -0.67 |
Evolus has higher earnings, but lower revenue than Ascend Wellness. Evolus is trading at a lower price-to-earnings ratio than Ascend Wellness, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Evolus has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Ascend Wellness has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.
Insider and Institutional Ownership
90.7% of Evolus shares are held by institutional investors. Comparatively, 17.3% of Ascend Wellness shares are held by institutional investors. 5.0% of Evolus shares are held by insiders. Comparatively, 21.9% of Ascend Wellness shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations for Evolus and Ascend Wellness, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Evolus | 1 | 1 | 4 | 0 | 2.50 |
| Ascend Wellness | 0 | 1 | 0 | 0 | 2.00 |
Evolus currently has a consensus target price of $15.00, indicating a potential upside of 114.90%. Given Evolus’ stronger consensus rating and higher probable upside, research analysts plainly believe Evolus is more favorable than Ascend Wellness.
Summary
Evolus beats Ascend Wellness on 9 of the 13 factors compared between the two stocks.
About Evolus
Evolus, Inc., a performance beauty company, focuses on delivering products in the cash-pay aesthetic market in the United States, Canada, and Europe. The company offers Jeuveau, a proprietary 900 kilodalton purified botulinum toxin type A formulation for the temporary improvement in the appearance of moderate to severe glabellar lines in adults. It also provides dermal filler products under the Estyme and Evolysse names. The company was incorporated in 2012 and is headquartered in Newport Beach, California.
About Ascend Wellness
Ascend Wellness Holdings, Inc. engages in the cultivation, manufacture, and distribution of cannabis consumer packaged goods in the United States. The company offers flower, pre-rolls, concentrates, vapes, edibles, tinctures, and other cannabis-related products under the Common Goods, SimplyHerb, Ozone, Ozone Reserve, Royale, Tunnel Vision, Miss Grass, Lowell Smokes, Edie Parker, 1906, and AiroPro brands. It also owns, operates, and manages cannabis cultivation facilities and dispensaries. The company sells its products through company-owned retail stores and third-party licensed retail cannabis stores. Ascend Wellness Holdings, Inc. was incorporated in 2018 and is headquartered in New York, New York.
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