Natural Health Trends (NASDAQ:NHTC – Get Free Report) and Procter & Gamble (NYSE:PG – Get Free Report) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.
Dividends
Natural Health Trends pays an annual dividend of $0.40 per share and has a dividend yield of 22.2%. Procter & Gamble pays an annual dividend of $4.35 per share and has a dividend yield of 3.0%. Natural Health Trends pays out -250.0% of its earnings in the form of a dividend. Procter & Gamble pays out 65.7% 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. 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.
Earnings and Valuation
This table compares Natural Health Trends and Procter & Gamble”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Natural Health Trends | $39.78 million | 0.39 | -$880,000.00 | ($0.16) | -11.25 |
| Procter & Gamble | $87.03 billion | 3.85 | $16.05 billion | $6.62 | 21.80 |
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.
Insider and Institutional Ownership
10.1% of Natural Health Trends shares are held by institutional investors. Comparatively, 65.8% of Procter & Gamble shares are held by institutional investors. 12.9% of Natural Health Trends shares are held by company insiders. Comparatively, 0.2% of Procter & Gamble 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.
Volatility & Risk
Natural Health Trends has a beta of 0.92, suggesting that its stock price is 8% 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.
Profitability
This table compares Natural Health Trends and Procter & Gamble’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Natural Health Trends | -4.51% | -8.00% | -4.58% |
| Procter & Gamble | 18.44% | 31.36% | 13.09% |
Analyst Ratings
This is a summary of current recommendations and price targets for Natural Health Trends and Procter & Gamble, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Natural Health Trends | 1 | 0 | 0 | 0 | 1.00 |
| Procter & Gamble | 0 | 11 | 13 | 0 | 2.54 |
Procter & Gamble has a consensus target price of $161.52, suggesting a potential upside of 11.94%. Given Procter & Gamble’s stronger consensus rating and higher probable upside, analysts clearly believe Procter & Gamble is more favorable than Natural Health Trends.
Summary
Procter & Gamble beats Natural Health Trends on 13 of the 17 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 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.
Receive News & Ratings for Natural Health Trends Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Natural Health Trends and related companies with MarketBeat.com's FREE daily email newsletter.
