Contrasting Bausch + Lomb (NYSE:BLCO) & Fractyl Health (NASDAQ:GUTS)

Fractyl Health (NASDAQ:GUTS) and Bausch + Lomb (NYSE:BLCO) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Profitability

This table compares Fractyl Health and Bausch + Lomb’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fractyl Health	N/A	-1,362.10%	-84.89%
Bausch + Lomb	-2.05%	5.01%	2.34%

Risk & Volatility

Fractyl Health has a beta of 2.9, suggesting that its share price is 190% more volatile than the S&P 500. Comparatively, Bausch + Lomb has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Institutional and Insider Ownership

11.1% of Bausch + Lomb shares are held by institutional investors. 8.4% of Fractyl Health shares are held by insiders. Comparatively, 1.4% of Bausch + Lomb shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Fractyl Health and Bausch + Lomb, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fractyl Health	1	1	3	0	2.40
Bausch + Lomb	1	8	4	2	2.47

Fractyl Health presently has a consensus target price of $50.25, suggesting a potential upside of 5,304.39%. Bausch + Lomb has a consensus target price of $20.83, suggesting a potential upside of 4.27%. Given Fractyl Health’s higher probable upside, equities analysts plainly believe Fractyl Health is more favorable than Bausch + Lomb.

Valuation and Earnings

This table compares Fractyl Health and Bausch + Lomb”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fractyl Health	$90,000.00	136.99	-$140.95 million	($10.56)	-0.09
Bausch + Lomb	$5.10 billion	1.40	-$360.00 million	($0.31)	-64.45

Fractyl Health has higher earnings, but lower revenue than Bausch + Lomb. Bausch + Lomb is trading at a lower price-to-earnings ratio than Fractyl Health, indicating that it is currently the more affordable of the two stocks.

Summary

Bausch + Lomb beats Fractyl Health on 8 of the 14 factors compared between the two stocks.

About Fractyl Health

Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.

About Bausch + Lomb

Bausch + Lomb Corporation operates as an eye health company in the United States, Puerto Rico, China, France, Japan, Germany, the United Kingdom, Canada, Russia, Spain, Italy, Mexico, Poland, South Korea, and internationally. It operates in three segments: Vision Care, Pharmaceuticals, and Surgical. The Vision Care segment provides contact lens that covers the spectrum of wearing modalities, including daily disposable and frequently replaced contact lenses; and contact lens care products comprising over-the-counter eye drops, eye vitamins, and mineral supplements that address various conditions, such as eye allergies, conjunctivitis, dry eye, and redness relief. Its Pharmaceuticals segment offers proprietary and generic pharmaceutical products for post-operative treatments, as well as for the treatment of glaucoma, eye inflammation, ocular hypertension, dry eyes, and retinal diseases. The Surgical segment provides medical device equipment, consumables, and technologies for the treatment of cataracts, corneal, vitreous, and retinal eye conditions; and intraocular lenses and delivery systems, phacoemulsification equipment, and other surgical instruments and devices for cataract surgery. The company sells its products and services through direct sales forces and independent distributors. Bausch + Lomb Corporation was founded in 1853 and is headquartered in Vaughan, Canada. Bausch + Lomb Corporation is a subsidiary of Bausch Health Companies Inc.