Critical Survey: HempAmericana (OTCMKTS:HMPQ) and Olaplex (NASDAQ:OLPX)

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

Risk & Volatility

HempAmericana has a beta of -0.41, suggesting that its share price is 141% less volatile than the S&P 500. Comparatively, Olaplex has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for HempAmericana and Olaplex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HempAmericana	0	0	0	0	0.00
Olaplex	1	5	1	0	2.00

Olaplex has a consensus price target of $1.92, indicating a potential downside of 7.11%. Given HempAmericana’s higher probable upside, research analysts plainly believe HempAmericana is more favorable than Olaplex.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HempAmericana	N/A	N/A	N/A
Olaplex	-3.53%	2.23%	1.31%

Institutional & Insider Ownership

87.4% of Olaplex shares are owned by institutional investors. 4.8% of Olaplex shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HempAmericana	N/A	N/A	N/A	N/A	N/A
Olaplex	$425.35 million	3.27	-$9.25 million	($0.02)	-103.50

HempAmericana has higher earnings, but lower revenue than Olaplex.

Summary

Olaplex beats HempAmericana on 8 of the 10 factors compared between the two stocks.

About HempAmericana

HempAmericana, Inc. researches, develops, and sells products made of industrial hemp in the United States. It provides hemp-based concrete, hemp bags, hemp seeds for consumption, hemp clothing, and hemp rolling paper products. HempAmericana, Inc. was founded in 2014 and is based in New York, New York.

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.