Procter & Gamble (NYSE:PG) vs. Nature’s Sunshine Products (NASDAQ:NATR) Critical Survey

Nature’s Sunshine Products (NASDAQ:NATR) and Procter & Gamble (NYSE:PG) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Institutional and Insider Ownership

79.4% of Nature’s Sunshine Products shares are held by institutional investors. Comparatively, 65.8% of Procter & Gamble shares are held by institutional investors. 3.1% of Nature’s Sunshine Products shares are held by insiders. Comparatively, 0.2% of Procter & Gamble shares are held by 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Nature’s Sunshine Products and Procter & Gamble, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nature’s Sunshine Products	0	1	2	0	2.67
Procter & Gamble	0	11	13	0	2.54

Nature’s Sunshine Products currently has a consensus price target of $30.50, indicating a potential upside of 126.77%. Procter & Gamble has a consensus price target of $161.19, indicating a potential upside of 10.34%. Given Nature’s Sunshine Products’ stronger consensus rating and higher probable upside, equities analysts plainly believe Nature’s Sunshine Products is more favorable than Procter & Gamble.

Risk and Volatility

Nature’s Sunshine Products has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Procter & Gamble has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.

Valuation & Earnings

This table compares Nature’s Sunshine Products and Procter & Gamble”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nature’s Sunshine Products	$480.14 million	0.49	$19.52 million	$1.01	13.32
Procter & Gamble	$87.03 billion	3.90	$16.05 billion	$6.62	22.07

Procter & Gamble has higher revenue and earnings than Nature’s Sunshine Products. Nature’s Sunshine Products is trading at a lower price-to-earnings ratio than Procter & Gamble, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nature’s Sunshine Products	3.68%	12.88%	8.17%
Procter & Gamble	18.44%	31.36%	13.09%

Summary

Procter & Gamble beats Nature’s Sunshine Products on 9 of the 14 factors compared between the two stocks.

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.

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.