Kenvue (NYSE:KVUE – Get Free Report) and Beauty Health (NASDAQ:SKIN – Get Free Report) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
Risk & Volatility
Kenvue has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Beauty Health has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
Profitability
This table compares Kenvue and Beauty Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kenvue | 10.76% | 21.22% | 8.37% |
| Beauty Health | -9.79% | -47.83% | -5.79% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kenvue | $15.12 billion | 2.27 | $1.47 billion | $0.87 | 20.58 |
| Beauty Health | $300.80 million | 0.29 | -$9.52 million | ($0.22) | -3.07 |
Kenvue has higher revenue and earnings than Beauty Health. Beauty Health is trading at a lower price-to-earnings ratio than Kenvue, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Kenvue and Beauty Health, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kenvue | 0 | 12 | 3 | 0 | 2.20 |
| Beauty Health | 1 | 5 | 1 | 0 | 2.00 |
Kenvue currently has a consensus target price of $19.27, indicating a potential upside of 7.64%. Beauty Health has a consensus target price of $1.38, indicating a potential upside of 103.70%. Given Beauty Health’s higher probable upside, analysts clearly believe Beauty Health is more favorable than Kenvue.
Institutional and Insider Ownership
97.6% of Kenvue shares are held by institutional investors. Comparatively, 93.3% of Beauty Health shares are held by institutional investors. 1.6% of Kenvue shares are held by company insiders. Comparatively, 35.5% 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 company is poised for long-term growth.
Summary
Kenvue beats Beauty Health on 11 of the 14 factors compared between the two stocks.
About Kenvue
Kenvue Inc. operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, eye care, and other products under the Tylenol, Motrin, Benadryl, Nicorette, Zarbee's, ORSLTM, Rhinocort, Calpol, and Zyrtec brands. The Skin Health and Beauty segment provides face and body care, hair, sun, and other care products under the Neutrogena, Aveeno, Dr.Ci:Labo, Le Petit Marseillais, Lubriderm, Rogaine, and OGX brand names. The Essential Health segment offers oral and baby, women's health, wound, and other care products under the Listerine, Johnson's, Band-Aid, and Stayfree, o.b., tampons, Carefree, and Desitin Diaper Rash brands. The company was incorporated in 2022 and is headquartered in Skillman, New Jersey.
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.
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