Reviewing Olaplex (NASDAQ:OLPX) and Oddity Tech (NASDAQ:ODD)

Olaplex (NASDAQ:OLPX) and Oddity Tech (NASDAQ:ODD) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Earnings & Valuation

This table compares Olaplex and Oddity Tech’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Olaplex	$458.30 million	1.82	$61.59 million	$0.09	14.00
Oddity Tech	$508.68 million	3.71	$58.53 million	$1.02	32.52

Olaplex has higher earnings, but lower revenue than Oddity Tech. Olaplex is trading at a lower price-to-earnings ratio than Oddity Tech, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

87.4% of Olaplex shares are held by institutional investors. Comparatively, 35.9% of Oddity Tech shares are held by institutional investors. 6.1% of Olaplex shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Olaplex and Oddity Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Olaplex	13.44%	13.09%	6.25%
Oddity Tech	11.51%	26.22%	16.39%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Olaplex and Oddity Tech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olaplex	0	7	1	0	2.13
Oddity Tech	0	3	5	0	2.63

Olaplex presently has a consensus target price of $2.59, indicating a potential upside of 105.91%. Oddity Tech has a consensus target price of $53.63, indicating a potential upside of 61.67%. Given Olaplex’s higher probable upside, equities analysts clearly believe Olaplex is more favorable than Oddity Tech.

Summary

Oddity Tech beats Olaplex on 8 of the 13 factors compared between the two stocks.

About Olaplex

Olaplex Holdings, Inc. develops, manufactures, and sells hair care products in the United States and internationally. The company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair, as well as oil, moisture mask, and nourishing hair serum. It provides hair care products to professional hair salons, retailers, and everyday consumers. The company distributes its products through professional distributors in salons, directly to retailers for sale in their physical stores, e-commerce sites, and its website, Olaplex.com, as well as third party e-commerce platforms. The company was founded in 2014 and is based in Santa Barbara, California.

About Oddity Tech

Oddity Tech Ltd. operates as a consumer tech company that builds digital-first brands for the beauty and wellness industries in the United States and internationally. It serves consumers worldwide through its AI-driven online platform, which uses data science, machine learning, and computer vision capabilities to identify consumer needs, and develop solutions in the form of beauty and wellness products. The company sells beauty, hair, and skin products under the IL MAKIAGE and SpoiledChild brands. In addition, it operates ODDITY LABS, a biotechnology center, which develops various ingredients, including novel molecules, probiotics, and peptides for beauty and wellness products. Oddity Tech Ltd. was incorporated in 2013 and is headquartered in Tel Aviv, Israel.