Financial Comparison: Revlon (REV) versus Herbalife LTD. (HLF)
Revlon (NYSE: REV) and Herbalife LTD. (NYSE:HLF) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Valuation & Earnings
This table compares Revlon and Herbalife LTD.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Revlon||$2.65 billion||0.35||$293.10 million||($2.20)||-7.93|
|Herbalife LTD.||$4.42 billion||1.32||$727.70 million||$4.76||13.01|
Herbalife LTD. has higher revenue and earnings than Revlon. Revlon is trading at a lower price-to-earnings ratio than Herbalife LTD., indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
16.3% of Revlon shares are held by institutional investors. 78.0% of Revlon shares are held by insiders. Comparatively, 5.0% of Herbalife LTD. shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Revlon has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Herbalife LTD. has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Revlon and Herbalife LTD., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Herbalife LTD. has a consensus target price of $86.33, indicating a potential upside of 39.36%. Given Herbalife LTD.’s higher possible upside, analysts clearly believe Herbalife LTD. is more favorable than Revlon.
This table compares Revlon and Herbalife LTD.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Herbalife LTD. beats Revlon on 10 of the 13 factors compared between the two stocks.
Revlon Company Profile
Revlon, Inc. manufactures, markets and sells around the world a range of beauty and personal care products, including color cosmetics, hair color, hair care and hair treatments, as well as beauty tools, men’s grooming products, anti-perspirant deodorants, fragrances, skincare and other beauty care products. The Company operates through four segments: Consumer, which includes cosmetics, hair color and hair care, beauty tools, anti-perspirant deodorants, fragrances and skincare products; Professional, which includes a line of products sold to hair and nail salons, and professional salon distributors, including hair color, shampoos, conditioners, styling products, nail polishes and nail enhancements; Elizabeth Arden, which include Elizabeth Arden, which produces skin care, color cosmetics and fragrances under the Elizabeth Arden brand and Other, which includes the distribution of prestige, designer and celebrity fragrances, cosmetics and skincare products.
Herbalife LTD. Company Profile
Herbalife Ltd. is a global nutrition company. The Company develops and sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, as well as personal care products. Its operating segments are based on geographical operations in six regions: North America; Mexico; South and Central America; Europe, the Middle East, and Africa (EMEA); Asia Pacific, and China. The Company categorizes its products into five groups: weight management, targeted nutrition, energy, sports and fitness, outer nutrition, and literature, promotional and other. As of December 31, 2016, it marketed and sold approximately 140 products encompassing over 4,700 stock keeping units (SKUs) globally. Its product categories include meal replacement; protein shakes; drink mixes; dietary and nutritional supplements containing herbs, vitamins, minerals and other natural ingredients; facial skin care; body care; hair care products; sales tools, and educational materials.
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