LifeMD (NASDAQ:LFMD – Get Free Report) and Beauty Health (NASDAQ:SKIN – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.
Insider & Institutional Ownership
35.5% of LifeMD shares are owned by institutional investors. Comparatively, 93.3% of Beauty Health shares are owned by institutional investors. 18.4% of LifeMD shares are owned by insiders. Comparatively, 40.3% of Beauty Health shares are owned by 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 LifeMD and Beauty Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LifeMD | 2.37% | -150.88% | -22.59% |
| Beauty Health | -2.03% | -9.38% | -1.21% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LifeMD | 1 | 1 | 8 | 0 | 2.70 |
| Beauty Health | 1 | 6 | 1 | 0 | 2.00 |
LifeMD currently has a consensus price target of $9.14, suggesting a potential upside of 100.50%. Beauty Health has a consensus price target of $2.02, suggesting a potential upside of 218.66%. Given Beauty Health’s higher probable upside, analysts plainly believe Beauty Health is more favorable than LifeMD.
Risk and Volatility
LifeMD has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, Beauty Health has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.
Earnings & Valuation
This table compares LifeMD and Beauty Health”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LifeMD | $194.05 million | 1.14 | $14.35 million | $0.05 | 91.20 |
| Beauty Health | $300.80 million | 0.27 | -$9.52 million | ($0.17) | -3.73 |
LifeMD has higher earnings, but lower revenue than Beauty Health. Beauty Health is trading at a lower price-to-earnings ratio than LifeMD, indicating that it is currently the more affordable of the two stocks.
Summary
LifeMD beats Beauty Health on 8 of the 14 factors compared between the two stocks.
About LifeMD
LifeMD, Inc. operates as a direct-to-patient telehealth company that connects consumers to healthcare professionals for medical care in the United States. The company offers telehealth platform comprising RexMD, a men's telehealth brand that provides access to virtual medical treatment for a variety of men's health needs from licensed physician; ShapiroMD that provides virtual medical treatment, prescription medications, patented doctor formulated OTC products, topical compounded medications, and medical devices treating male and female hair loss; NavaMD, a female-oriented tele-dermatology that offers virtual medical treatment from dermatologists and other providers; and prescription oral and compounded topical medications to treat aging and acne; and Cleared which provides personalized treatments for allergy, asthma and immunology, including in-home tests for both environmental and food allergies, prescriptions for allergies and asthma and immunotherapies for treating chronic allergies. It also provides LifeMD PC, a direct-to-consumer virtual primary care which includes 24/7 access to a provider for their primary care, urgent care, and chronic care needs; and offers virtual consultations and treatment, prescription medications, diagnostics and imaging, wellness coaching, and more. In addition, the company offers PDFSimpli, an online software as a service platform that allows users to create, edit, convert, sign, and share PDF documents; ResumeBuild which provides digital resume and cover letter services; SignSimpli, a digital signature platform; and LegalSimpli, a provider of legal forms for consumers and small businesses. It sells its products directly to consumers and through e-commerce platforms, as well as through third party partner channels. The company was formerly known as Conversion Labs, Inc. and changed its name to LifeMD, Inc. in February 2021. LifeMD, Inc. was incorporated in 1994 and is headquartered in New York, New York.
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.
Receive News & Ratings for LifeMD Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for LifeMD and related companies with MarketBeat.com's FREE daily email newsletter.
