Head to Head Analysis: Beauty Health (NASDAQ:SKIN) and Adagio Medical (NASDAQ:ADGM)

Beauty Health (NASDAQ:SKIN) and Adagio Medical (NASDAQ:ADGM) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Risk and Volatility

Beauty Health has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Adagio Medical has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.

Earnings and Valuation

This table compares Beauty Health and Adagio Medical”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beauty Health	$398.00 million	0.56	-$100.12 million	($0.42)	-4.31
Adagio Medical	N/A	N/A	-$2.13 million	N/A	N/A

Adagio Medical has lower revenue, but higher earnings than Beauty Health.

Profitability

This table compares Beauty Health and Adagio Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beauty Health	-8.11%	-44.83%	-3.54%
Adagio Medical	N/A	160.59%	40.99%

Insider & Institutional Ownership

93.3% of Beauty Health shares are owned by institutional investors. Comparatively, 48.1% of Adagio Medical shares are owned by institutional investors. 41.0% of Beauty Health shares are owned by company insiders. Comparatively, 53.5% of Adagio Medical shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Beauty Health and Adagio Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beauty Health	1	3	1	0	2.00
Adagio Medical	0	0	0	0	0.00

Beauty Health currently has a consensus target price of $2.55, indicating a potential upside of 40.88%. Given Beauty Health’s stronger consensus rating and higher possible upside, research analysts clearly believe Beauty Health is more favorable than Adagio Medical.

Summary

Beauty Health beats Adagio Medical on 6 of the 11 factors compared between the two stocks.

About Beauty Health

The Beauty Health Company designs, develops, manufactures, markets, and sells aesthetic technologies and products worldwide. The company's flagship product includes HydraFacial that enhance the skin to cleanse, extract, and hydrate the skin with proprietary solutions and serums. Its products also comprise Syndeo, a Delivery System designs to connects providers to the consumer's preferences to create a more personalized experience; consumables, such as single-use tips, solutions, and serums used to provide a hydrafacial treatment; SkinStylus SteriLock Microsystem, a microneedling device used for the treatment of enhancing appearance of surgical or traumatic hypertrophic scars on the abdomen and facial acne scarring in Fitzpatrick skin types I, II, and III; and Keravive, a treatment for scalp health. The company was founded in 1997 and is headquartered in Long Beach, California.

About Adagio Medical

Adagio Medical Holdings, Inc., a developmental stage medical device company, focuses on the development and commercialization of ablation technologies for the treatment of cardiac arrhythmias. It offers treatment for cardiac arrhythmias, including atrial fibrillation, atrial flutter, and ventricular tachycardia. The company’s product portfolio includes iCLAS atrial ultra-low temperature cryoablation (ULTC) catheter and accessories; vCLAS ventricular ULTC catheter; and Cryopulse atrial pulsed-field cryoablation catheter and accessories. The company is based in Laguna Hills, California.