Critical Review: Haleon (NYSE:HLN) and Prenetics Global (NASDAQ:PRE)

Prenetics Global (NASDAQ:PRE) and Haleon (NYSE:HLN) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Volatility & Risk

Prenetics Global has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500. Comparatively, Haleon has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500.

Institutional and Insider Ownership

25.0% of Prenetics Global shares are owned by institutional investors. Comparatively, 6.7% of Haleon shares are owned by institutional investors. 7.8% of Prenetics Global shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Prenetics Global and Haleon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prenetics Global	1	0	4	0	2.60
Haleon	2	3	3	2	2.50

Prenetics Global currently has a consensus price target of $34.25, indicating a potential upside of 87.57%. Given Prenetics Global’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Prenetics Global is more favorable than Haleon.

Earnings and Valuation

This table compares Prenetics Global and Haleon”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prenetics Global	$92.39 million	3.33	-$37.71 million	($4.58)	-3.99
Haleon	$11.15 billion	3.96	$2.20 billion	$0.39	25.71

Haleon has higher revenue and earnings than Prenetics Global. Prenetics Global is trading at a lower price-to-earnings ratio than Haleon, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Prenetics Global and Haleon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prenetics Global	-62.45%	-20.33%	-15.42%
Haleon	N/A	N/A	N/A

Summary

Haleon beats Prenetics Global on 9 of the 15 factors compared between the two stocks.

About Prenetics Global

Prenetics Global Limited, a genomics-driven health sciences company, engages in revolutionizing prevention, early detection, and treatment. It offers CircleDNA, a prevention arm that uses whole exome sequencing to offer comprehensive consumer DNA test. The company also, through its joint venture, Insighta, engages in pioneering multi-cancer early detection technologies. In addition, the company, through its equity interests in ACT Genomics Holdings Company Limited, is involved in genomic profiling of solid tumors through ACTOnco. Prenetics Global Limited was founded in 2007 and is based in Quarry Bay, Hong Kong.

About Haleon

Haleon plc, together with its subsidiaries, engages in the research, development, manufacture, and sale of various consumer healthcare products in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. The company provides oral health products, such as toothpastes, mouth washes, and denture care products under the Sensodyne, Polident, Parodontax, Biotene brands; and vitamins, minerals, and supplements under Centrum, Emergen-C, Caltrate brands. It also offers various over-the-counter products comprising nasal drops, and cold, flu, and allergy relief products under Otrivine, Theraflu, and Flonase brands for respiratory issues; anti-inflammatory and pain relief products under Voltaren, Panadol, and Advil brands; and antacids and antihistamine products under TUMS, ENO, and Fenistil brands for digestive health and other issues. The company was formerly known as DRVW 2022 plc and changed its name to Haleon plc in February 2022. Haleon plc was founded in 1715 and is headquartered in Weybridge, the United Kingdom.