e.l.f. Beauty (NYSE:ELF) & Dermata Therapeutics (NASDAQ:DRMA) Financial Analysis

e.l.f. Beauty (NYSE:ELF) and Dermata Therapeutics (NASDAQ:DRMA) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Insider & Institutional Ownership

92.4% of e.l.f. Beauty shares are owned by institutional investors. Comparatively, 8.7% of Dermata Therapeutics shares are owned by institutional investors. 3.5% of e.l.f. Beauty 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 stock is poised for long-term growth.

Earnings & Valuation

This table compares e.l.f. Beauty and Dermata Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
e.l.f. Beauty	$1.76 billion	3.31	$26.32 million	$1.00	98.84
Dermata Therapeutics	N/A	N/A	-$7.56 million	($5.31)	-0.21

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.

Analyst Recommendations

This is a breakdown of recent recommendations for e.l.f. Beauty and Dermata Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
e.l.f. Beauty	1	6	10	1	2.61
Dermata Therapeutics	1	0	1	0	2.00

e.l.f. Beauty currently has a consensus target price of $89.25, indicating a potential downside of 9.70%. Dermata Therapeutics has a consensus target price of $10.00, indicating a potential upside of 809.09%. Given Dermata Therapeutics’ higher possible upside, analysts plainly believe Dermata Therapeutics is more favorable than e.l.f. Beauty.

Volatility & Risk

e.l.f. Beauty has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500. Comparatively, Dermata Therapeutics has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Profitability

This table compares e.l.f. Beauty and Dermata Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
e.l.f. Beauty	3.38%	14.07%	6.81%
Dermata Therapeutics	N/A	-127.91%	-105.05%

Summary

e.l.f. Beauty beats Dermata Therapeutics on 12 of the 14 factors compared between the two stocks.

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.

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.