Head-To-Head Comparison: Interparfums (NASDAQ:IPAR) versus Betterware de Mexico SAPI de C (NYSE:BWMX)

Betterware de Mexico SAPI de C (NYSE:BWMX) and Interparfums (NASDAQ:IPAR) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Institutional and Insider Ownership

12.7% of Betterware de Mexico SAPI de C shares are held by institutional investors. Comparatively, 55.6% of Interparfums shares are held by institutional investors. 43.6% of Interparfums shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Betterware de Mexico SAPI de C and Interparfums, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Betterware de Mexico SAPI de C	1	1	0	1	2.33
Interparfums	1	5	2	1	2.33

Interparfums has a consensus target price of $123.29, indicating a potential upside of 10.03%. Given Interparfums’ higher probable upside, analysts plainly believe Interparfums is more favorable than Betterware de Mexico SAPI de C.

Profitability

This table compares Betterware de Mexico SAPI de C and Interparfums’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Betterware de Mexico SAPI de C	8.35%	77.89%	11.28%
Interparfums	11.17%	15.21%	10.85%

Earnings and Valuation

This table compares Betterware de Mexico SAPI de C and Interparfums”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Betterware de Mexico SAPI de C	$744.00 million	0.82	$55.37 million	$1.83	8.49
Interparfums	$1.49 billion	2.41	$168.39 million	$5.23	21.42

Interparfums has higher revenue and earnings than Betterware de Mexico SAPI de C. Betterware de Mexico SAPI de C is trading at a lower price-to-earnings ratio than Interparfums, indicating that it is currently the more affordable of the two stocks.

Dividends

Betterware de Mexico SAPI de C pays an annual dividend of $1.30 per share and has a dividend yield of 8.4%. Interparfums pays an annual dividend of $3.20 per share and has a dividend yield of 2.9%. Betterware de Mexico SAPI de C pays out 71.0% of its earnings in the form of a dividend. Interparfums pays out 61.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Interparfums has increased its dividend for 4 consecutive years.

Volatility & Risk

Betterware de Mexico SAPI de C has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Interparfums has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Summary

Interparfums beats Betterware de Mexico SAPI de C on 13 of the 16 factors compared between the two stocks.

About Betterware de Mexico SAPI de C

Betterware de Mexico, S.A.B. de C.V. operates as a direct-to-consumer company in Mexico. The company focuses on the home organization segment with a product portfolio, including home solutions, kitchen and food preservation, technology and mobility, and other categories. It serves approximately 3 million households through distributors and associates in approximately 800 communities throughout Mexico. The company was formerly known as Betterware de México, S.A.P.I. de C.V. Betterware de Mexico, S.A.B. de C.V. was founded in 1995 and is based in Zapopan, Mexico. Betterware de Mexico, S.A.B. de C.V. is a subsidiary of Campalier, S.A. de C.V.

About Interparfums

Inter Parfums, Inc., together with its subsidiaries, manufactures, markets, and distributes a range of fragrances and fragrance related products in the United States and internationally. It operates in two segments, European Based Operations and United States Based Operations. The company offers its fragrance and cosmetic products under the Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lanvin, Moncler, Montblanc, Rochas, S.T. Dupont, Van Cleef & Arpels, Abercrombie & Fitch, Anna Sui, Donna Karan, DKNY, Emanual Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, Ungaro, and Roberto Cavalli brands, as well as French Connection, Intimate, and Dunhill, Lacoste names. It sells its products to department stores, perfumeries, specialty stores, duty free shops, and domestic and international wholesalers, and distributors, as well as through e-commerce. The company was formerly known as Jean Philippe Fragrances, Inc. and changed its name to Inter Parfums, Inc. in July 1999. Inter Parfums, Inc. was founded in 1982 and is headquartered in New York, New York.