USANA Health Sciences (NYSE: USNA) and Estee Lauder Companies, Inc. (The) (NYSE:EL) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Profitability

This table compares USANA Health Sciences and Estee Lauder Companies, Inc. (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
USANA Health Sciences 9.47% 28.93% 20.74%
Estee Lauder Companies, Inc. (The) 10.56% 32.38% 11.90%

Dividends

Estee Lauder Companies, Inc. (The) pays an annual dividend of $1.36 per share and has a dividend yield of 1.3%. USANA Health Sciences does not pay a dividend. Estee Lauder Companies, Inc. (The) pays out 40.6% of its earnings in the form of a dividend. USANA Health Sciences has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations for USANA Health Sciences and Estee Lauder Companies, Inc. (The), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USANA Health Sciences 0 0 1 0 3.00
Estee Lauder Companies, Inc. (The) 0 3 17 0 2.85

USANA Health Sciences currently has a consensus target price of $70.00, indicating a potential upside of 18.24%. Estee Lauder Companies, Inc. (The) has a consensus target price of $108.84, indicating a potential upside of 1.73%. Given USANA Health Sciences’ stronger consensus rating and higher probable upside, research analysts clearly believe USANA Health Sciences is more favorable than Estee Lauder Companies, Inc. (The).

Insider and Institutional Ownership

44.7% of USANA Health Sciences shares are held by institutional investors. Comparatively, 54.6% of Estee Lauder Companies, Inc. (The) shares are held by institutional investors. 53.2% of USANA Health Sciences shares are held by company insiders. Comparatively, 17.0% of Estee Lauder Companies, Inc. (The) shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares USANA Health Sciences and Estee Lauder Companies, Inc. (The)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
USANA Health Sciences $1.02 billion 1.42 $147.32 million $3.86 15.34
Estee Lauder Companies, Inc. (The) $11.82 billion 3.33 $2.35 billion $3.35 31.94

Estee Lauder Companies, Inc. (The) has higher revenue and earnings than USANA Health Sciences. USANA Health Sciences is trading at a lower price-to-earnings ratio than Estee Lauder Companies, Inc. (The), indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

USANA Health Sciences has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Estee Lauder Companies, Inc. (The) has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Summary

Estee Lauder Companies, Inc. (The) beats USANA Health Sciences on 9 of the 17 factors compared between the two stocks.

USANA Health Sciences Company Profile

USANA Health Sciences, Inc. develops and manufactures science-based nutritional and personal care products. The Company operates as a direct selling company in two geographic regions: Americas and Europe, and Asia Pacific, which includes three sub-regions: Southeast Asia Pacific, Greater China and North Asia. Its product lines include USANA Nutritionals Essentials, Optimizers, Foods, Sense-beautiful science and All Other. Its USANA Nutritionals Essentials product line includes vitamin and mineral supplements that provide a foundation of total body nutrition for every age group beginning with children of approximately one year. Its Optimizers product line consists of targeted supplements designed to meet individual health and nutritional needs. Its Sense-beautiful science product line includes science-based, personal care products that support skin and hair by providing topical nourishment, moisturization and protection.

Estee Lauder Companies, Inc. (The) Company Profile

The Estee Lauder Companies Inc. manufactures and markets skin care, makeup, fragrance and hair care products. The Company offers products, including skin care, makeup, fragrance, hair care and other. The Company operates in beauty products segment. The Company’s products are sold in over 150 countries and territories under brand names, including Estee Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, Tommy Hilfiger, MAC, Kiton, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin, Tom Ford, Smashbox, Ermenegildo Zegna, AERIN, Tory Burch, RODIN olio lusso, Le Labo, Editions de Parfums Frederic Malle, GLAMGLOW, By Kilian, BECCA and Too Faced. Its skin care products include moisturizers, serums, cleansers, toners, body care, exfoliators, acne and oil correctors, facial masks, cleansing devices and sun care products.

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