Head-To-Head Comparison: Interparfums (NASDAQ:IPAR) and Nature’s Sunshine Products (NASDAQ:NATR)

Interparfums (NASDAQ:IPAR) and Nature’s Sunshine Products (NASDAQ:NATR) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Profitability

This table compares Interparfums and Nature’s Sunshine Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interparfums	11.17%	15.21%	10.85%
Nature’s Sunshine Products	3.68%	12.88%	8.17%

Volatility and Risk

Interparfums has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Nature’s Sunshine Products has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Dividends

Interparfums pays an annual dividend of $3.20 per share and has a dividend yield of 2.8%. Nature’s Sunshine Products pays an annual dividend of $0.40 per share and has a dividend yield of 3.1%. Interparfums pays out 61.2% of its earnings in the form of a dividend. Nature’s Sunshine Products pays out 39.6% 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. Interparfums has increased its dividend for 4 consecutive years. Nature’s Sunshine Products is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

55.6% of Interparfums shares are held by institutional investors. Comparatively, 79.4% of Nature’s Sunshine Products shares are held by institutional investors. 43.6% of Interparfums shares are held by company insiders. Comparatively, 3.1% of Nature’s Sunshine Products shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Interparfums and Nature’s Sunshine Products”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interparfums	$1.49 billion	2.42	$168.39 million	$5.23	21.48
Nature’s Sunshine Products	$492.02 million	0.45	$19.52 million	$1.01	12.58

Interparfums has higher revenue and earnings than Nature’s Sunshine Products. Nature’s Sunshine Products 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 summary of current ratings and recommmendations for Interparfums and Nature’s Sunshine Products, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interparfums	2	4	2	1	2.22
Nature’s Sunshine Products	0	1	2	0	2.67

Interparfums presently has a consensus price target of $123.29, suggesting a potential upside of 9.75%. Nature’s Sunshine Products has a consensus price target of $30.50, suggesting a potential upside of 139.97%. Given Nature’s Sunshine Products’ stronger consensus rating and higher possible upside, analysts plainly believe Nature’s Sunshine Products is more favorable than Interparfums.

Summary

Interparfums beats Nature’s Sunshine Products on 12 of the 17 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 Nature’s Sunshine Products

Nature’s Sunshine Products, Inc., a natural health and wellness company, manufactures and sells nutritional and personal care products in Asia, Europe, North America, Latin America, and internationally. It offers general health products related to blood sugar support, bone health, cellular health, cognitive function, joint health, mood, sexual health, sleep, sports and energy, and vision. The company also provides immunity, cardiovascular, and digestive products; and personal care products, such as oils and lotions, aloe vera gels, herbal shampoos, herbal skin treatment, toothpaste, and skin cleansers, as well as weight management products. It offers its products under the Nature’s Sunshine and Synergy WorldWide brands through a sales force of independent consultants. Nature’s Sunshine Products, Inc. was founded in 1972 and is headquartered in Lehi, Utah.