Nu Skin Enterprises (NYSE: NUS) and Avon Products (NYSE:AVP) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.
Earnings and Valuation
This table compares Nu Skin Enterprises and Avon Products’ revenue, earnings per share and valuation.
||Earnings Per Share
|Nu Skin Enterprises
Avon Products has higher revenue and earnings than Nu Skin Enterprises. Avon Products is trading at a lower price-to-earnings ratio than Nu Skin Enterprises, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
79.3% of Nu Skin Enterprises shares are held by institutional investors. Comparatively, 84.9% of Avon Products shares are held by institutional investors. 5.2% of Nu Skin Enterprises shares are held by company insiders. Comparatively, 1.3% of Avon Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Nu Skin Enterprises and Avon Products’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|Nu Skin Enterprises
This is a summary of recent ratings and target prices for Nu Skin Enterprises and Avon Products, as reported by MarketBeat.com.
||Strong Buy Ratings
|Nu Skin Enterprises
Nu Skin Enterprises presently has a consensus price target of $60.67, indicating a potential downside of 4.34%. Avon Products has a consensus price target of $3.62, indicating a potential upside of 60.74%. Given Avon Products’ higher probable upside, analysts plainly believe Avon Products is more favorable than Nu Skin Enterprises.
Nu Skin Enterprises pays an annual dividend of $1.44 per share and has a dividend yield of 2.3%. Avon Products does not pay a dividend. Nu Skin Enterprises pays out 48.8% of its earnings in the form of a dividend. Nu Skin Enterprises has raised its dividend for 16 consecutive years.
Risk and Volatility
Nu Skin Enterprises has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Avon Products has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.
Nu Skin Enterprises beats Avon Products on 10 of the 16 factors compared between the two stocks.
About Nu Skin Enterprises
Nu Skin Enterprises, Inc. is a direct selling company that develops and distributes personal care products and nutritional supplements, and a range of other products and services. The Company offers anti-aging personal care products and nutritional supplements under its Nu Skin and Pharmanex brands. The Nu Skin brand offers a range of products, including ageLOC Me customized skin care system, ageLOC Spa systems and ageLOC Transformation anti-aging skin care system. The Pharmanex product line includes ageLOC Youth nutritional supplement, ageLOC TR90 weight management and body shaping system, and LifePak nutritional supplements. The Company has operations in various geographic regions, including Greater China, North Asia, Americas, South Asia/Pacific, and Europe, the Middle East and Africa (EMEA). It is focused on offering ageLOC Youth nutritional supplement and ageLOC Me personalized skin care system. The Company also offers household products and technology services.
About Avon Products
Avon Products, Inc. is a manufacturer and marketer of beauty and related products. The Company’s segments include Europe, Middle East & Africa; South Latin America; North Latin America, and Asia Pacific. Its product categories are Beauty, and Fashion and Home. Beauty consists of skincare (which includes personal care), fragrance and color (cosmetics). Fashion and Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products. The Company’s products include Anew Ultimate Supreme Advanced Performance Creme, Anew Vitale Visible Perfection Blurring Treatment, Big & Multiplied Volume Mascara, Avon True Perfectly Matte Lipstick, Avon Life for Him and for Her Fragrances, Far Away Infinity Fragrance and Avon Nutra Effects body collection with Active Seed Complex. The Company primarily sells its products to the consumer through the direct-selling channel.
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