Critical Contrast: Elevai Labs (NASDAQ:ELAB) and Karuna Therapeutics (NASDAQ:KRTX)

Karuna Therapeutics (NASDAQ:KRTX) and Elevai Labs (NASDAQ:ELAB) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.

Earnings & Valuation

This table compares Karuna Therapeutics and Elevai Labs’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Karuna Therapeutics	$654,000.00	19,239.07	-$433.68 million	($11.72)	-28.14
Elevai Labs	$1.71 million	6.70	-$4.30 million	N/A	N/A

Elevai Labs has higher revenue and earnings than Karuna Therapeutics.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Karuna Therapeutics and Elevai Labs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Karuna Therapeutics	0	10	6	0	2.38
Elevai Labs	0	0	0	0	N/A

Karuna Therapeutics currently has a consensus price target of $293.92, indicating a potential downside of 10.89%. Given Karuna Therapeutics’ higher possible upside, equities research analysts plainly believe Karuna Therapeutics is more favorable than Elevai Labs.

Profitability

This table compares Karuna Therapeutics and Elevai Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Karuna Therapeutics	N/A	-31.63%	-30.38%
Elevai Labs	N/A	N/A	N/A

Institutional & Insider Ownership

22.2% of Elevai Labs shares are held by institutional investors. 13.2% of Karuna Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Elevai Labs beats Karuna Therapeutics on 5 of the 9 factors compared between the two stocks.

About Karuna Therapeutics

Karuna Therapeutics, Inc., a clinical-stage biopharmaceutical company, creates and delivers transformative medicines for people living with psychiatric and neurological conditions. Its lead product candidate includes KarXT, an oral modulator of muscarinic receptors for the treatment of acute psychosis in patients with schizophrenia; and for the treatment of central nervous system disorders, such as negative and cognitive symptoms of schizophrenia and psychosis, as well as for the treatment of various peripheral tissues and dementia-related psychosis, including Alzheimer's disease. The company also focuses on developing other muscarinic-targeted drug candidates; and intends to develop lead candidature TRPC4/5 and KAR-2618 for the treatment of depressive disorder. Karuna Therapeutics, Inc. has a license agreement with Eli Lilly and Company, and Zai Lab (Shanghai) Co., Ltd; patent license agreement with PureTech Health LLC; and drug discovery partnership with Charles River Laboratories, as well as drug discovery collaboration with PsychoGenics, Inc. The company was formerly known as Karuna Pharmaceuticals, Inc. and changed its name to Karuna Therapeutics, Inc. in March 2019. Karuna Therapeutics, Inc. was incorporated in 2009 and is headquartered in Boston, Massachusetts.

About Elevai Labs

Elevai Labs, Inc., a skincare development company, designs, manufactures, and markets skincare products. Its products include Empower and Enfinity post-skincare procedure care serums for the face, neck, and upper chest regions. The company was formerly known as Reactive Medical Labs Inc. and changed its name to Elevai Labs, Inc. in December 2021. Elevai Labs, Inc. was incorporated in 2020 and is based in Newport Beach, California.