Financial Survey: Foxx Development (NASDAQ:FOXX) and Olaplex (NASDAQ:OLPX)

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Olaplex and Foxx Development, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olaplex	1	5	1	0	2.00
Foxx Development	1	0	0	0	1.00

Olaplex currently has a consensus price target of $1.89, suggesting a potential downside of 6.35%. Given Olaplex’s stronger consensus rating and higher possible upside, research analysts plainly believe Olaplex is more favorable than Foxx Development.

Insider & Institutional Ownership

87.4% of Olaplex shares are held by institutional investors. Comparatively, 60.4% of Foxx Development shares are held by institutional investors. 4.2% of Olaplex shares are held by insiders. Comparatively, 31.6% of Foxx Development shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Olaplex has a beta of 2.24, indicating that its share price is 124% more volatile than the S&P 500. Comparatively, Foxx Development has a beta of -0.28, indicating that its share price is 128% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Olaplex	-2.19%	1.07%	0.60%
Foxx Development	-24.62%	N/A	-40.69%

Earnings & Valuation

This table compares Olaplex and Foxx Development”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Olaplex	$422.96 million	3.19	-$9.25 million	($0.01)	-201.50
Foxx Development	$62.27 million	0.46	-$9.02 million	($2.26)	-1.81

Foxx Development has lower revenue, but higher earnings than Olaplex. Olaplex is trading at a lower price-to-earnings ratio than Foxx Development, indicating that it is currently the more affordable of the two stocks.

Summary

Olaplex beats Foxx Development on 11 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 Foxx Development

Foxx Development Holdings Inc. is a consumer electronics and integrated Internet-of-Things solution company catering to both retail and institutional clients. The company currently sells a diverse range of products including mobile phones, tablets and other consumer electronics devices principally in United State and is in the process of developing and distributing end-to-end communication terminals and IoT solutions. Foxx Development Holdings Inc., formerly known as Acri Capital Acquisition Corporation, is based in Austin, TX.