Contrasting Interparfums (IPAR) and Its Competitors

Interparfums (NASDAQ:IPAR) is one of 55 public companies in the “Personal Care Products” industry, but how does it compare to its peers? We will compare Interparfums to related companies based on the strength of its institutional ownership, valuation, dividends, analyst recommendations, profitability, earnings and risk.

Analyst Ratings

This is a summary of current ratings and target prices for Interparfums and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interparfums	1	5	2	0	2.12
Interparfums Competitors	896	2923	3648	228	2.42

Interparfums currently has a consensus target price of $123.29, suggesting a potential downside of 8.87%. As a group, “Personal Care Products” companies have a potential downside of 0.34%. Given Interparfums’ peers stronger consensus rating and higher possible upside, analysts clearly believe Interparfums has less favorable growth aspects than its peers.

Institutional and Insider Ownership

55.6% of Interparfums shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Personal Care Products” companies are owned by institutional investors. 43.6% of Interparfums shares are owned by insiders. Comparatively, 11.7% of shares of all “Personal Care Products” companies are owned by 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.

Profitability

This table compares Interparfums and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interparfums	11.33%	15.44%	11.05%
Interparfums Competitors	-5.63%	-66.11%	-0.44%

Volatility and Risk

Interparfums has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Interparfums’ peers have a beta of 0.80, suggesting that their average stock price is 20% less volatile than the S&P 500.

Dividends

Interparfums pays an annual dividend of $3.20 per share and has a dividend yield of 2.4%. Interparfums pays out 61.2% of its earnings in the form of a dividend. As a group, “Personal Care Products” companies pay a dividend yield of 3.6% and pay out 47.8% of their earnings in the form of a dividend. Interparfums has increased its dividend for 4 consecutive years. Interparfums lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares Interparfums and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Interparfums	$1.49 billion	$168.39 million	25.87
Interparfums Competitors	$8.01 billion	$1.11 billion	8.49

Interparfums’ peers have higher revenue and earnings than Interparfums. Interparfums is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Interparfums peers beat Interparfums on 8 of the 15 factors compared.

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.