Head-To-Head Contrast: Natural Health Trends (NASDAQ:NHTC) vs. Interparfums (NASDAQ:IPAR)

Natural Health Trends (NASDAQ:NHTC) and Interparfums (NASDAQ:IPAR) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Natural Health Trends	-3.03%	-4.88%	-2.94%
Interparfums	11.32%	15.47%	10.82%

Earnings & Valuation

This table compares Natural Health Trends and Interparfums”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natural Health Trends	$38.25 million	0.63	-$880,000.00	($0.11)	-25.73
Interparfums	$1.49 billion	1.99	$168.39 million	$5.27	17.58

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

Insider & Institutional Ownership

10.1% of Natural Health Trends shares are owned by institutional investors. Comparatively, 55.6% of Interparfums shares are owned by institutional investors. 12.9% of Natural Health Trends shares are owned by company insiders. Comparatively, 43.7% of Interparfums shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Natural Health Trends pays an annual dividend of $0.40 per share and has a dividend yield of 14.1%. Interparfums pays an annual dividend of $3.20 per share and has a dividend yield of 3.5%. Natural Health Trends pays out -363.6% of its earnings in the form of a dividend. Interparfums pays out 60.7% 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 raised its dividend for 4 consecutive years. Natural Health Trends is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and target prices for Natural Health Trends and Interparfums, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natural Health Trends	1	0	0	0	1.00
Interparfums	0	3	3	1	2.71

Interparfums has a consensus price target of $105.20, suggesting a potential upside of 13.57%. Given Interparfums’ stronger consensus rating and higher possible upside, analysts plainly believe Interparfums is more favorable than Natural Health Trends.

Volatility & Risk

Natural Health Trends has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Interparfums has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Summary

Interparfums beats Natural Health Trends on 16 of the 18 factors compared between the two stocks.

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.

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.