Contrasting Betterware de Mexico SAPI de C (NYSE:BWMX) & Edgewell Personal Care (NYSE:EPC)

Edgewell Personal Care (NYSE:EPC) and Betterware de Mexico SAPI de C (NYSE:BWMX) are both small-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Institutional & Insider Ownership

91.9% of Edgewell Personal Care shares are held by institutional investors. Comparatively, 12.7% of Betterware de Mexico SAPI de C shares are held by institutional investors. 3.0% of Edgewell Personal Care shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Edgewell Personal Care and Betterware de Mexico SAPI de C”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Edgewell Personal Care	$2.22 billion	0.59	$25.40 million	($1.67)	-17.02
Betterware de Mexico SAPI de C	$744.00 million	0.84	$55.37 million	$1.83	9.16

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

Profitability

This table compares Edgewell Personal Care and Betterware de Mexico SAPI de C’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Edgewell Personal Care	-4.55%	5.76%	2.35%
Betterware de Mexico SAPI de C	8.35%	77.89%	11.28%

Analyst Recommendations

This is a summary of recent ratings and price targets for Edgewell Personal Care and Betterware de Mexico SAPI de C, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Edgewell Personal Care	1	4	3	0	2.25
Betterware de Mexico SAPI de C	1	1	0	1	2.33

Edgewell Personal Care currently has a consensus price target of $31.83, indicating a potential upside of 11.99%. Given Edgewell Personal Care’s higher possible upside, research analysts clearly believe Edgewell Personal Care is more favorable than Betterware de Mexico SAPI de C.

Risk & Volatility

Edgewell Personal Care has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Betterware de Mexico SAPI de C has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Dividends

Edgewell Personal Care pays an annual dividend of $0.60 per share and has a dividend yield of 2.1%. Betterware de Mexico SAPI de C pays an annual dividend of $1.10 per share and has a dividend yield of 6.6%. Edgewell Personal Care pays out -35.9% of its earnings in the form of a dividend. Betterware de Mexico SAPI de C pays out 60.1% 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.

Summary

Betterware de Mexico SAPI de C beats Edgewell Personal Care on 11 of the 17 factors compared between the two stocks.

About Edgewell Personal Care

Edgewell Personal Care Company is a manufacturer and marketer of personal care products in the wet shave, sun and skin care, feminine care and infant care categories. As of September 30, 2016, the Company had a portfolio of over 25 brands. It manages its business in four segments: Wet Shave, Sun and Skin Care, Feminine Care and All Other. Its Wet shave products are sold under the Schick, Wilkinson Sword, Edge, Skintimate, Shave Guard and Personna brand names. Its Sun and Skin Care products are sold under the Banana Boat, Hawaiian Tropic, Wet Ones and Playtex brand names and offers Wet Ones, portable hand wipes category, and Playtex household gloves, the branded household glove in the United States. Its Feminine Care segment markets its products under the Playtex, Stayfree, Carefree and o.b. brands and markets pads and liners. Its All Other segment includes infant care, pet care and miscellaneous other products.

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.