Head-To-Head Comparison: Dermata Therapeutics (NASDAQ:DRMA) vs. Medifast (NYSE:MED)

Medifast (NYSE:MED) and Dermata Therapeutics (NASDAQ:DRMA) are both small-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Volatility and Risk

Medifast has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Dermata Therapeutics has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Institutional & Insider Ownership

95.5% of Medifast shares are owned by institutional investors. Comparatively, 8.7% of Dermata Therapeutics shares are owned by institutional investors. 3.7% of Medifast shares are owned by insiders. Comparatively, 21.9% of Dermata Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Medifast and Dermata Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medifast	$385.79 million	0.37	-$18.67 million	($2.33)	-5.41
Dermata Therapeutics	N/A	N/A	-$7.56 million	($5.31)	-0.21

Dermata Therapeutics has lower revenue, but higher earnings than Medifast. Medifast is trading at a lower price-to-earnings ratio than Dermata Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Medifast and Dermata Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medifast	-8.08%	-6.69%	-5.25%
Dermata Therapeutics	N/A	-127.91%	-105.05%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Medifast and Dermata Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medifast	1	1	0	1	2.33
Dermata Therapeutics	1	0	1	0	2.00

Medifast presently has a consensus price target of $12.00, suggesting a potential downside of 4.78%. Dermata Therapeutics has a consensus price target of $10.00, suggesting a potential upside of 809.09%. Given Dermata Therapeutics’ higher possible upside, analysts plainly believe Dermata Therapeutics is more favorable than Medifast.

About Medifast

Medifast, Inc., through its subsidiaries, engages in the manufacture and sale of weight loss, weight management, and healthy living products in the United States and the Asia-Pacific. It offers bars, puffs, cereal, crunchers, drinks, hearty choices, oatmeal, pancakes, pudding, soft serve, shakes, smoothies, soft bakes, and soups under the OPTAVIA, OPTAVIA ACTIVE, and Optimal Health brand names. The company markets its products through point-of-sale transactions, as well as through ecommerce platform. Medifast, Inc. was founded in 1980 and is headquartered in Baltimore, Maryland.

About Dermata Therapeutics

Dermata Therapeutics, Inc., a late-stage medical dermatology company, focuses on identifying, developing, and commercializing pharmaceutical product candidates for the treatment of medical and aesthetic skin conditions and diseases. The company's lead product candidate is DMT310, which has completed Phase IIb clinical trial for treatment of moderate-to-severe acne; and Phase Ib proof of concept (POC) trial for Mild-to-Moderate Psoriasis, as well as is in a Phase 2 clinical trial for treatment of moderate-to-severe rosacea. It is also developing DMT410 that has completed Phase Ib POC trials for the treatment of anxillary hyperhidrosis and aesthetic conditions. Dermata Therapeutics, Inc. was incorporated in 2014 and is headquartered in San Diego, California.