Critical Analysis: Kaya (OTCMKTS:KAYS) versus Olaplex (NASDAQ:OLPX)

Kaya (OTCMKTS:KAYS) and Olaplex (NASDAQ:OLPX) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings for Kaya and Olaplex, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kaya	0	0	0	0	0.00
Olaplex	1	3	2	1	2.43

Olaplex has a consensus target price of $1.81, indicating a potential upside of 10.52%. Given Olaplex’s stronger consensus rating and higher possible upside, analysts clearly believe Olaplex is more favorable than Kaya.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kaya	-44,929.98%	N/A	-5,461.05%
Olaplex	-1.18%	1.31%	0.70%

Institutional and Insider Ownership

87.4% of Olaplex shares are held by institutional investors. 23.5% of Kaya shares are held by company insiders. Comparatively, 4.2% of Olaplex shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Kaya has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Olaplex has a beta of 2.25, suggesting that its stock price is 125% more volatile than the S&P 500.

Valuation & Earnings

This table compares Kaya and Olaplex”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kaya	$10,000.00	145.50	-$2.08 million	($0.16)	-0.22
Olaplex	$422.67 million	2.59	$19.52 million	N/A	N/A

Olaplex has higher revenue and earnings than Kaya.

Summary

Olaplex beats Kaya on 12 of the 14 factors compared between the two stocks.

About Kaya

Kaya Holdings, Inc., a vertically integrated legal cannabis enterprise, engages in the operation of psychedelic treatment clinics and medical cannabis dispensaries primarily in the United States. It offers a range of cannabis products, including flower, oils, vape cartridges and cannabis infused confections, baked goods, and beverages. The company also operates retail outlets under the Kaya Shack brand name, as well as offers strain specific cannabis cigarettes under the Kaya Buddies name, and strains of cannabis under the Kaya Farms name. In addition, it is involved in the development of a psychedelic treatment center under The Sacred Mushroom name, that provides its guests access to psilocybin treatments, located in Portland, Oregon. The company was formerly known as Alternative Fuels America, Inc. and changed its name to Kaya Holdings, Inc. in April 2015. Kaya Holdings, Inc. is headquartered in Fort Lauderdale, Florida.

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.