COMPASS Pathways (NASDAQ:CMPS – Get Free Report) and Solventum (NYSE:SOLV – Get Free Report) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.
Profitability
This table compares COMPASS Pathways and Solventum’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| COMPASS Pathways | N/A | -111.18% | -56.55% |
| Solventum | 18.13% | 28.01% | 7.17% |
Valuation and Earnings
This table compares COMPASS Pathways and Solventum”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| COMPASS Pathways | N/A | N/A | -$155.12 million | ($2.72) | -2.04 |
| Solventum | $8.25 billion | 1.50 | $478.00 million | $8.68 | 8.20 |
Solventum has higher revenue and earnings than COMPASS Pathways. COMPASS Pathways is trading at a lower price-to-earnings ratio than Solventum, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
46.2% of COMPASS Pathways shares are owned by institutional investors. 3.9% of COMPASS Pathways shares are owned by company insiders. Comparatively, 0.1% of Solventum shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for COMPASS Pathways and Solventum, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| COMPASS Pathways | 1 | 1 | 7 | 0 | 2.67 |
| Solventum | 1 | 7 | 3 | 1 | 2.33 |
COMPASS Pathways presently has a consensus price target of $15.88, suggesting a potential upside of 185.57%. Solventum has a consensus price target of $85.33, suggesting a potential upside of 19.83%. Given COMPASS Pathways’ stronger consensus rating and higher possible upside, analysts clearly believe COMPASS Pathways is more favorable than Solventum.
Risk and Volatility
COMPASS Pathways has a beta of 2.22, meaning that its stock price is 122% more volatile than the S&P 500. Comparatively, Solventum has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.
Summary
Solventum beats COMPASS Pathways on 8 of the 14 factors compared between the two stocks.
About COMPASS Pathways
COMPASS Pathways plc operates as a mental health care company in the United Kingdom and the United States. It develops COMP360, a psilocybin therapy that is in Phase III clinical trials for the treatment of treatment-resistant depression; and is in Phase II clinical trials for the treatment of post-traumatic stress disorder and anorexia nervosa. The company was formerly known as COMPASS Rx Limited and changed its name to COMPASS Pathways plc in August 2020. COMPASS Pathways plc was incorporated in 2020 and is headquartered in London, the United Kingdom.
About Solventum
Solventum Corporation, a healthcare company, engages in the developing, manufacturing, and commercializing a portfolio of solutions to address critical customer and patient needs. It operates through four segments: Medsurg, Dental Solutions, Health Information Systems, and Purification and Filtration. The Medsurg segment is a provider of solutions including advanced wound care, I.V. site management, sterilization assurance, temperature management, surgical supplies, stethoscopes, and medical electrodes. The Dental Solutions segment provides a comprehensive suite of dental and orthodontic products including brackets, aligners, restorative cements, and bonding agents. The Health Information Systems provides software solutions including computer-assisted, physician documentation, direct-to-bill and coding automation, classification methodologies, speech, recognition, and data visualization platforms. The Purification and Filtration segment provides purification and filtration technologies including filters, purifiers, cartridges, and membranes. The company was incorporated in 2023 and is based in Saint Paul, Minnesota.
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