Head-To-Head Contrast: Herbalife LTD. (HLF) & Nu Skin Enterprises (NUS)
Herbalife LTD. (NYSE: HLF) and Nu Skin Enterprises (NYSE:NUS) are both mid-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Institutional & Insider Ownership
79.3% of Nu Skin Enterprises shares are owned by institutional investors. 5.0% of Herbalife LTD. shares are owned by company insiders. Comparatively, 5.2% of Nu Skin Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Herbalife LTD. and Nu Skin Enterprises’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Herbalife LTD.||$4.42 billion||1.42||$727.70 million||$4.76||14.63|
|Nu Skin Enterprises||$2.18 billion||1.52||$326.95 million||$2.95||21.19|
Herbalife LTD. has higher revenue and earnings than Nu Skin Enterprises. Herbalife LTD. 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.
This table compares Herbalife LTD. and Nu Skin Enterprises’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nu Skin Enterprises||7.53%||24.14%||11.26%|
This is a summary of recent ratings and target prices for Herbalife LTD. and Nu Skin Enterprises, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nu Skin Enterprises||2||2||3||0||2.14|
Herbalife LTD. presently has a consensus target price of $86.33, suggesting a potential upside of 23.94%. Nu Skin Enterprises has a consensus target price of $61.86, suggesting a potential downside of 1.03%. Given Herbalife LTD.’s stronger consensus rating and higher possible upside, research analysts plainly believe Herbalife LTD. 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%. Herbalife LTD. does not pay a dividend. Nu Skin Enterprises pays out 48.8% of its earnings in the form of a dividend. Herbalife LTD. has raised its dividend for 16 consecutive years.
Volatility and Risk
Herbalife LTD. has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Nu Skin Enterprises has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.
Herbalife LTD. beats Nu Skin Enterprises on 10 of the 17 factors compared between the two stocks.
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.
Nu Skin Enterprises Company Profile
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.
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