Dermata Therapeutics (NASDAQ:DRMA – Get Free Report) and e.l.f. Beauty (NYSE:ELF – Get Free Report) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.
Volatility & Risk
Dermata Therapeutics has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, e.l.f. Beauty has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.
Profitability
This table compares Dermata Therapeutics and e.l.f. Beauty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dermata Therapeutics | N/A | -166.66% | -130.13% |
| e.l.f. Beauty | 3.38% | 14.07% | 6.81% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dermata Therapeutics | 1 | 0 | 1 | 0 | 2.00 |
| e.l.f. Beauty | 1 | 5 | 10 | 2 | 2.72 |
Dermata Therapeutics currently has a consensus target price of $10.00, indicating a potential upside of 584.93%. e.l.f. Beauty has a consensus target price of $90.81, indicating a potential downside of 0.83%. Given Dermata Therapeutics’ higher possible upside, equities analysts clearly believe Dermata Therapeutics is more favorable than e.l.f. Beauty.
Earnings and Valuation
This table compares Dermata Therapeutics and e.l.f. Beauty”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dermata Therapeutics | N/A | N/A | -$7.56 million | ($4.39) | -0.33 |
| e.l.f. Beauty | $1.64 billion | 3.30 | $26.32 million | $1.00 | 91.57 |
e.l.f. Beauty has higher revenue and earnings than Dermata Therapeutics. Dermata Therapeutics is trading at a lower price-to-earnings ratio than e.l.f. Beauty, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
8.7% of Dermata Therapeutics shares are owned by institutional investors. Comparatively, 92.4% of e.l.f. Beauty shares are owned by institutional investors. 21.9% of Dermata Therapeutics shares are owned by insiders. Comparatively, 3.5% of e.l.f. Beauty shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
e.l.f. Beauty beats Dermata Therapeutics on 12 of the 14 factors compared between the two stocks.
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.
About e.l.f. Beauty
e.l.f. Beauty, Inc. is a holding company, which engages in the provision of inclusive, accessible, clean, vegan and cruelty free cosmetics and skin care products. The company focuses on the e-commerce, national retailers and international business channels. Its brands include elf, elf skin, WELL People and KEYS soulcare. The company was founded in 2004 and is headquartered in Oakland, CA.
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