Financial Contrast: Olaplex (NASDAQ:OLPX) & Pigeon (OTCMKTS:PGENY)

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

Earnings and Valuation

This table compares Olaplex and Pigeon”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Olaplex	$422.67 million	2.50	$19.52 million	N/A	N/A
Pigeon	$688.99 million	1.53	$55.26 million	$0.13	17.00

Pigeon has higher revenue and earnings than Olaplex.

Volatility and Risk

Olaplex has a beta of 2.26, indicating that its stock price is 126% more volatile than the S&P 500. Comparatively, Pigeon has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Olaplex and Pigeon, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olaplex	2	3	1	1	2.14
Pigeon	0	0	0	0	0.00

Olaplex currently has a consensus price target of $1.85, indicating a potential upside of 17.09%. Given Olaplex’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Olaplex is more favorable than Pigeon.

Insider and Institutional Ownership

87.4% of Olaplex shares are held by institutional investors. 4.2% of Olaplex shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Olaplex	-1.18%	1.31%	0.70%
Pigeon	9.17%	12.53%	9.66%

Summary

Olaplex beats Pigeon on 9 of the 14 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 Pigeon

Pigeon Corporation, together with its subsidiaries, engages in the manufacture, sale, import, and export of baby and child-care products, maternity items, women’s care products, home healthcare products, and nursing care products in Japan and internationally. The company operates in four segments: Japan Business, China Business, Singapore Business, and Lansinoh Business. The company is involved in the provision of baby and mother care products, such as nursing bottles and nipples, toiletries, breast pads, breast pumps, nipple care products, breast milk storage bags, and breastfeeding-related products under Pigeon and Lansinoh brands. It also offers non-woven products, baby strollers, aging-prevention products, wet wipes, skincare products, cleaning and disinfecting products, and elder care products and services. In addition, the company provides child-minding and daycare services, in-home nursing care support services, outpatient care facility services, operation of in-company childcare facilities, daycare services, event childcare services, babysitter dispatch services, preschool education services, and at-home elder care services. The company was formerly known as Pigeon Honyuki Honpo Corporation and changed its name to Pigeon Corporation in 1966. Pigeon Corporation was founded in 1949 and is headquartered in Tokyo, Japan.