Critical Comparison: P3 Health Partners (NASDAQ:PIII) vs. Strata Skin Sciences (NASDAQ:SSKN)

Strata Skin Sciences (NASDAQ:SSKN) and P3 Health Partners (NASDAQ:PIII) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Valuation & Earnings

This table compares Strata Skin Sciences and P3 Health Partners”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Strata Skin Sciences	$30.98 million	0.02	-$10.09 million	($1.41)	-0.09
P3 Health Partners	$1.46 billion	0.06	-$147.95 million	($38.60)	-0.29

Strata Skin Sciences has higher earnings, but lower revenue than P3 Health Partners. P3 Health Partners is trading at a lower price-to-earnings ratio than Strata Skin Sciences, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Strata Skin Sciences has a beta of -0.06, suggesting that its share price is 106% less volatile than the S&P 500. Comparatively, P3 Health Partners has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.

Profitability

This table compares Strata Skin Sciences and P3 Health Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Strata Skin Sciences	-35.64%	-476.73%	-33.49%
P3 Health Partners	-8.57%	-302.33%	-19.99%

Institutional & Insider Ownership

32.4% of Strata Skin Sciences shares are owned by institutional investors. Comparatively, 7.8% of P3 Health Partners shares are owned by institutional investors. 40.9% of Strata Skin Sciences shares are owned by insiders. Comparatively, 10.9% of P3 Health Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Strata Skin Sciences and P3 Health Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Strata Skin Sciences	1	0	0	0	1.00
P3 Health Partners	1	2	1	0	2.00

P3 Health Partners has a consensus target price of $14.00, suggesting a potential upside of 23.78%. Given P3 Health Partners’ stronger consensus rating and higher possible upside, analysts clearly believe P3 Health Partners is more favorable than Strata Skin Sciences.

Summary

P3 Health Partners beats Strata Skin Sciences on 9 of the 14 factors compared between the two stocks.

About Strata Skin Sciences

STRATA Skin Sciences, Inc., a medical technology company, develops, commercializes, and markets products for the treatment of dermatologic conditions in the United States, Europe, the Middle East, Asia, Australia, South Africa, and Central and South America. The company operates in two segments, Dermatology Recurring Procedures and Dermatology Procedures Equipment. The company products include XTRAC and Pharos excimer lasers, and VTRAC lamp systems for the treatment systems that are used for the treatment of psoriasis, vitiligo, and other skin conditions. It also offers TheraClear Acne Therapy System for the treatment of mild to moderate inflammatory, comedonal, and pustular acne. The company was formerly known as MELA Sciences, Inc and changed its name to STRATA Skin Sciences, Inc. in January 2016. STRATA Skin Sciences, Inc. was incorporated in 1989 and is based in Horsham, Pennsylvania.

About P3 Health Partners

P3 Health Partners Inc., a patient-centered and physician-led population health management company, provides superior care services in the United States. It operates clinics and wellness centers. P3 Health Partners Inc. was founded in 2020 and is based in Henderson, Nevada.