Synergy CHC (NASDAQ:SNYR) vs. Herbalife (NYSE:HLF) Critical Comparison

Herbalife (NYSE:HLF) and Synergy CHC (NASDAQ:SNYR) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Profitability

This table compares Herbalife and Synergy CHC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Herbalife	3.16%	-43.90%	7.89%
Synergy CHC	-60.02%	N/A	-30.30%

Analyst Recommendations

This is a summary of recent recommendations for Herbalife and Synergy CHC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Herbalife	0	3	3	2	2.88
Synergy CHC	1	1	2	0	2.25

Herbalife currently has a consensus price target of $17.67, indicating a potential upside of 40.42%. Synergy CHC has a consensus price target of $6.25, indicating a potential upside of 6,806.08%. Given Synergy CHC’s higher probable upside, analysts clearly believe Synergy CHC is more favorable than Herbalife.

Valuation and Earnings

This table compares Herbalife and Synergy CHC”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Herbalife	$5.04 billion	0.26	$228.30 million	$1.55	8.12
Synergy CHC	$27.70 million	0.05	-$12.34 million	($1.40)	-0.06

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

Risk and Volatility

Herbalife has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Synergy CHC has a beta of -0.25, indicating that its share price is 125% less volatile than the S&P 500.

Summary

Herbalife beats Synergy CHC on 11 of the 13 factors compared between the two stocks.

About Herbalife

Herbalife Ltd. provides health and wellness products in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China, and the Asia Pacific. It offers products in the areas of weight management; targeted nutrition; energy, sports, and fitness; outer nutrition; and literature and promotional items. The company also provides weight management products, including meal replacement products, protein shakes, drink mixes, weight loss supplements, healthy snacks, and metabolism boosting teas; targeted nutrition products, which comprise functional beverages, and dietary and nutritional supplements that contain herbs, vitamins, minerals, and other natural ingredients; outer nutrition products, such as facial skin, body, and hair care products; and energy, sports, and fitness products, including N-R-G tea and energy drink products. In addition, it offers literature, promotional, and other materials that comprise start-up kits, sales tools, and educational materials. The company sells its products through sales representatives, independent service providers, and company-operated retail platforms. Herbalife Ltd. was formerly known as Herbalife Nutrition Ltd. and changed its name to Herbalife Ltd. in April 2023. The company was founded in 1980 and is headquartered in Los Angeles, California.

About Synergy CHC

Synergy CHC Corp. engages in the marketing and distribution of branded health and wellness products. The company was founded on December 29, 2010 and is headquartered in Westbrook, ME.