Critical Comparison: Pacific Health Care Organization (OTCMKTS:PFHO) versus Beauty Health (NASDAQ:SKIN)

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

Analyst Recommendations

This is a summary of current recommendations for Beauty Health and Pacific Health Care Organization, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beauty Health	1	5	1	0	2.00
Pacific Health Care Organization	0	0	0	0	0.00

Beauty Health currently has a consensus price target of $2.81, indicating a potential upside of 95.31%. Given Beauty Health’s stronger consensus rating and higher possible upside, research analysts plainly believe Beauty Health is more favorable than Pacific Health Care Organization.

Institutional & Insider Ownership

93.3% of Beauty Health shares are owned by institutional investors. 41.0% of Beauty Health shares are owned by insiders. Comparatively, 61.6% of Pacific Health Care Organization shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Beauty Health and Pacific Health Care Organization’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beauty Health	-3.87%	-19.70%	-1.97%
Pacific Health Care Organization	21.71%	11.80%	11.21%

Volatility & Risk

Beauty Health has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Pacific Health Care Organization has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500.

Valuation & Earnings

This table compares Beauty Health and Pacific Health Care Organization”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beauty Health	$334.30 million	0.55	-$29.10 million	($0.22)	-6.55
Pacific Health Care Organization	$6.07 million	2.85	$880,000.00	$0.11	12.27

Pacific Health Care Organization has lower revenue, but higher earnings than Beauty Health. Beauty Health is trading at a lower price-to-earnings ratio than Pacific Health Care Organization, indicating that it is currently the more affordable of the two stocks.

Summary

Pacific Health Care Organization beats Beauty Health on 8 of the 14 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 Pacific Health Care Organization

Pacific Health Care Organization, Inc., together with its subsidiaries, operates as a specialty workers' compensation cost containment company in the United States. It is involved in managing and administering health care organizations (HCOs) and medical provider networks (MPNs). The company also provides claims-related services, including utilization review, medical case management, medical bill review, employee advocate services, workers' compensation carve-outs, expert witness testimony, and Medicare set-aside services. It serves insurers, third party administrators, self-administered employers, municipalities, and other industries. The company was formerly known as Clear Air, Inc. and changed its name to Pacific Health Care Organization, Inc. in January 2001. Pacific Health Care Organization, Inc. was incorporated in 1970 and is based in Irvine, California.