Natural Health Trends (NASDAQ:NHTC) and Procter & Gamble (NYSE:PG) Critical Contrast

Procter & Gamble (NYSE:PG) and Natural Health Trends (NASDAQ:NHTC) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Valuation & Earnings

This table compares Procter & Gamble and Natural Health Trends”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procter & Gamble	$87.03 billion	3.93	$16.05 billion	$6.62	22.17
Natural Health Trends	$36.03 million	0.38	-$880,000.00	($0.16)	-10.06

Procter & Gamble has higher revenue and earnings than Natural Health Trends. Natural Health Trends is trading at a lower price-to-earnings ratio than Procter & Gamble, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

65.8% of Procter & Gamble shares are owned by institutional investors. Comparatively, 10.1% of Natural Health Trends shares are owned by institutional investors. 0.2% of Procter & Gamble shares are owned by company insiders. Comparatively, 12.9% of Natural Health Trends shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Procter & Gamble pays an annual dividend of $4.35 per share and has a dividend yield of 3.0%. Natural Health Trends pays an annual dividend of $0.40 per share and has a dividend yield of 24.8%. Procter & Gamble pays out 65.7% of its earnings in the form of a dividend. Natural Health Trends pays out -250.0% 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. Procter & Gamble has increased its dividend for 70 consecutive years. Natural Health Trends is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Procter & Gamble and Natural Health Trends, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procter & Gamble	0	10	13	0	2.57
Natural Health Trends	1	0	0	0	1.00

Procter & Gamble currently has a consensus price target of $161.52, indicating a potential upside of 10.04%. Given Procter & Gamble’s stronger consensus rating and higher possible upside, research analysts clearly believe Procter & Gamble is more favorable than Natural Health Trends.

Volatility and Risk

Procter & Gamble has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Natural Health Trends has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Profitability

This table compares Procter & Gamble and Natural Health Trends’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Procter & Gamble	18.44%	31.25%	13.09%
Natural Health Trends	-4.51%	-8.00%	-4.58%

Summary

Procter & Gamble beats Natural Health Trends on 13 of the 17 factors compared between the two stocks.

About Procter & Gamble

Procter & Gamble Co. engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances. The Health Care segment includes oral care products like toothbrushes, toothpaste, and personal health care such as gastrointestinal, rapid diagnostics, respiratory, and vitamins, minerals, and supplements. The Fabric and Home care segment consists of fabric enhancers, laundry additives and detergents, and air, dish, and surface care. The Baby, Feminine and Family Care segment sells baby wipes, diapers, and pants, adult incontinence, feminine care, paper towels, tissues, and toilet paper. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, OH.

About Natural Health Trends

Natural Health Trends Corp., a direct-selling and e-commerce company, provides personal care, wellness, and lifestyle products under the NHT Global brand. The company offers wellness products, including liquid, encapsulated, tableted and powder dietary and nutritional supplements, vitamins, and minerals; and herbal products comprising herbal supplements. It also provides beauty products, such as age-defying and hydrating cleansers, creams, lotions, serums, and toners; and lifestyle products, which include weight management and energy enhancing supplements, as well as topical gels. In addition, the company offers home appliances; and daily products, such as oral care, hair care, and body care. It sells its products directly to consumers, as well as through an e-commerce retail platform in the United States, Canada, Cayman Islands, Mexico, Peru, Hong Kong, Taiwan, China, Singapore, Malaysia, Thailand, South Korea, Japan, India, Russia, Kazakhstan, and Europe. The company was formerly known as Florida Institute of Massage Therapy, Inc. and changed its name to Natural Health Trends Corp. in June 1993. Natural Health Trends Corp. was incorporated in 1988 and is headquartered in Tsim Sha Tsui, Hong Kong.