Financial Analysis: Betterware de Mexico (BWMX) and Its Competitors

Betterware de Mexico (NASDAQ: BWMX) is one of 37 publicly-traded companies in the “Catalog & mail-order houses” industry, but how does it contrast to its peers? We will compare Betterware de Mexico to similar companies based on the strength of its profitability, dividends, risk, valuation, earnings, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Betterware de Mexico and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Betterware de Mexico 0 0 2 0 3.00
Betterware de Mexico Competitors 215 1016 3109 59 2.68

Betterware de Mexico currently has a consensus price target of $53.00, suggesting a potential upside of 22.77%. As a group, “Catalog & mail-order houses” companies have a potential upside of 19.25%. Given Betterware de Mexico’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Betterware de Mexico is more favorable than its peers.

Dividends

Betterware de Mexico pays an annual dividend of $1.71 per share and has a dividend yield of 4.0%. Betterware de Mexico pays out 363.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Catalog & mail-order houses” companies pay a dividend yield of 1.7% and pay out 47.2% of their earnings in the form of a dividend.

Insider & Institutional Ownership

3.6% of Betterware de Mexico shares are owned by institutional investors. Comparatively, 54.5% of shares of all “Catalog & mail-order houses” companies are owned by institutional investors. 27.9% of shares of all “Catalog & mail-order houses” companies are owned by 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.

Profitability

This table compares Betterware de Mexico and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Betterware de Mexico N/A N/A N/A
Betterware de Mexico Competitors -4.59% -5.97% 0.50%

Valuation and Earnings

This table compares Betterware de Mexico and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Betterware de Mexico $340.48 million $15.87 million 91.85
Betterware de Mexico Competitors $15.45 billion $709.82 million 6.52

Betterware de Mexico’s peers have higher revenue and earnings than Betterware de Mexico. Betterware de Mexico 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.

Betterware de Mexico Company Profile

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 organization, kitchen preparation, food containers, technology and mobility, and others. 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 Invex Security Trust 2397.

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