Comparing Dermata Therapeutics (NASDAQ:DRMA) & Kimberly-Clark (NASDAQ:KMB)

Kimberly-Clark (NASDAQ:KMB) and Dermata Therapeutics (NASDAQ:DRMA) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

76.3% of Kimberly-Clark shares are held by institutional investors. Comparatively, 8.7% of Dermata Therapeutics shares are held by institutional investors. 0.7% of Kimberly-Clark shares are held by insiders. Comparatively, 21.9% of Dermata Therapeutics shares are held 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.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimberly-Clark	1	11	4	1	2.29
Dermata Therapeutics	1	0	0	0	1.00

Kimberly-Clark currently has a consensus price target of $117.93, suggesting a potential upside of 8.50%. Given Kimberly-Clark’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Kimberly-Clark is more favorable than Dermata Therapeutics.

Earnings and Valuation

This table compares Kimberly-Clark and Dermata Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimberly-Clark	$16.58 billion	2.18	$2.02 billion	$5.88	18.48
Dermata Therapeutics	N/A	N/A	-$7.56 million	($4.39)	-0.31

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

Profitability

This table compares Kimberly-Clark and Dermata Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimberly-Clark	11.79%	143.92%	14.21%
Dermata Therapeutics	N/A	-166.66%	-130.13%

Risk & Volatility

Kimberly-Clark has a beta of 0.26, suggesting that its share price is 74% 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.

Summary

Kimberly-Clark beats Dermata Therapeutics on 12 of the 14 factors compared between the two stocks.

About Kimberly-Clark

Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care and consumer tissue products in the United States. It operates through three segments: Personal Care, Consumer Tissue, and K-C Professional. The company’s Personal Care segment offers disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear, and other related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Thinx, Poise, Depend, Plenitud, Softex, and other brand names. Its Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve, and other brand names. The company’s K-C Professional segment offers wipers, tissues, towels, apparel, personal protective equipment, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands. It also sells household use products directly to supermarkets, mass merchandisers, drugstores, warehouse clubs, variety and department stores, and other retail outlets, as well as through other distributors and e-commerce; and away-from-home use products directly to distributors, manufacturing, lodging, office building, food service, and public facilities, as well as through e-commerce. Kimberly-Clark Corporation was founded in 1872 and is headquartered in Dallas, Texas.

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.