Critical Survey: Interparfums (NASDAQ:IPAR) versus Traeger (NYSE:COOK)

Interparfums (NASDAQ:IPAR) and Traeger (NYSE:COOK) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Valuation and Earnings

This table compares Interparfums and Traeger”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interparfums	$1.49 billion	1.99	$168.39 million	$5.27	17.50
Traeger	$559.52 million	0.37	-$115.18 million	($41.92)	-1.76

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

Analyst Ratings

This is a breakdown of recent ratings for Interparfums and Traeger, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interparfums	0	3	4	1	2.75
Traeger	1	5	1	0	2.00

Interparfums currently has a consensus price target of $106.00, suggesting a potential upside of 14.90%. Traeger has a consensus price target of $50.08, suggesting a potential downside of 31.98%. Given Interparfums’ stronger consensus rating and higher possible upside, research analysts plainly believe Interparfums is more favorable than Traeger.

Insider and Institutional Ownership

55.6% of Interparfums shares are owned by institutional investors. Comparatively, 46.8% of Traeger shares are owned by institutional investors. 43.7% of Interparfums shares are owned by company insiders. Comparatively, 16.2% of Traeger shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Interparfums has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Traeger has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500.

Profitability

This table compares Interparfums and Traeger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interparfums	11.32%	15.47%	10.82%
Traeger	-21.84%	-13.76%	-3.95%

Summary

Interparfums beats Traeger on 14 of the 15 factors compared between the two stocks.

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.

About Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.