Critical Comparison: Medifast (NYSE:MED) and USANA Health Sciences (NYSE:USNA)

Medifast (NYSE:MED) and USANA Health Sciences (NYSE:USNA) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Profitability

This table compares Medifast and USANA Health Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medifast	-8.08%	-6.69%	-5.25%
USANA Health Sciences	-2.43%	3.41%	2.50%

Institutional & Insider Ownership

95.5% of Medifast shares are held by institutional investors. Comparatively, 54.2% of USANA Health Sciences shares are held by institutional investors. 3.7% of Medifast shares are held by insiders. Comparatively, 0.8% of USANA Health Sciences shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Medifast and USANA Health Sciences”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medifast	$385.79 million	0.35	-$18.67 million	($2.33)	-5.22
USANA Health Sciences	$925.26 million	0.30	$10.76 million	($1.21)	-12.51

USANA Health Sciences has higher revenue and earnings than Medifast. USANA Health Sciences is trading at a lower price-to-earnings ratio than Medifast, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Medifast has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, USANA Health Sciences has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Medifast and USANA Health Sciences, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medifast	1	2	0	0	1.67
USANA Health Sciences	2	0	0	0	1.00

Medifast presently has a consensus price target of $12.00, indicating a potential downside of 1.26%. Given Medifast’s stronger consensus rating and higher probable upside, equities analysts clearly believe Medifast is more favorable than USANA Health Sciences.

Summary

Medifast beats USANA Health Sciences on 7 of the 13 factors compared between the two stocks.

About Medifast

Medifast, Inc., through its subsidiaries, engages in the manufacture and sale of weight loss, weight management, and healthy living products in the United States and the Asia-Pacific. It offers bars, puffs, cereal, crunchers, drinks, hearty choices, oatmeal, pancakes, pudding, soft serve, shakes, smoothies, soft bakes, and soups under the OPTAVIA, OPTAVIA ACTIVE, and Optimal Health brand names. The company markets its products through point-of-sale transactions, as well as through ecommerce platform. Medifast, Inc. was founded in 1980 and is headquartered in Baltimore, Maryland.

About USANA Health Sciences

USANA Health Sciences, Inc. develops, manufactures, and sells science-based nutritional, personal care, and skincare products in the Asia Pacific, the Americas, and Europe. The company offers USANA nutritional products that comprise essentials/CellSentials, such as vitamin and mineral supplements that provide a foundation of total body nutrition for various age groups; optimizers consisting of targeted supplements that are designed to meet cardiovascular, skeletal/structural, and digestive health needs; and food that include meal replacement shakes, snack bars, and other related products. It also provides Celavive, a skin care regimen for various skin care types and ethnicities; and other products for prenatal, infant, and young child age groups. In addition, the company offers materials and online tools to assist associates in building their businesses, as well as in marketing products. It offers its products through retail stores and online. The company has a research collaboration agreement with Beijing University of Chinese Medicine; and National Sports Training Bureau. USANA Health Sciences, Inc. was founded in 1992 and is headquartered in Salt Lake City, Utah.