Analyzing Nu Skin Enterprises (NYSE:NUS) and Lifevantage (NASDAQ:LFVN)

Nu Skin Enterprises (NYSE:NUS) and Lifevantage (NASDAQ:LFVN) are both small-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares Nu Skin Enterprises and Lifevantage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nu Skin Enterprises	-15.73%	6.58%	3.63%
Lifevantage	2.94%	23.89%	12.47%

Dividends

Nu Skin Enterprises pays an annual dividend of $0.24 per share and has a dividend yield of 5.0%. Lifevantage pays an annual dividend of $0.20 per share and has a dividend yield of 3.0%. Nu Skin Enterprises pays out -5.4% of its earnings in the form of a dividend. Lifevantage pays out 44.4% 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. Lifevantage has raised its dividend for 3 consecutive years. Nu Skin Enterprises is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Nu Skin Enterprises and Lifevantage”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nu Skin Enterprises	$1.49 billion	0.16	$160.20 million	($4.47)	-1.06
Lifevantage	$228.53 million	0.37	$9.81 million	$0.45	14.87

Nu Skin Enterprises has higher revenue and earnings than Lifevantage. Nu Skin Enterprises is trading at a lower price-to-earnings ratio than Lifevantage, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Nu Skin Enterprises has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Lifevantage has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Institutional & Insider Ownership

82.8% of Nu Skin Enterprises shares are owned by institutional investors. Comparatively, 35.3% of Lifevantage shares are owned by institutional investors. 2.8% of Nu Skin Enterprises shares are owned by insiders. Comparatively, 22.0% of Lifevantage shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Nu Skin Enterprises and Lifevantage, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nu Skin Enterprises	2	0	0	0	1.00
Lifevantage	0	2	0	0	2.00

Lifevantage has a consensus target price of $5.00, suggesting a potential downside of 25.26%. Given Lifevantage’s stronger consensus rating and higher probable upside, analysts clearly believe Lifevantage is more favorable than Nu Skin Enterprises.

Summary

Lifevantage beats Nu Skin Enterprises on 10 of the 16 factors compared between the two stocks.

About Nu Skin Enterprises

Nu Skin Enterprises, Inc., together with its subsidiaries, engages in the development and distribution of various beauty and wellness products worldwide. It offers skin care devices, cosmetics, and other personal care products, including ageLOC LumiSpa and ageLOC LumiSpa iO; and nutricentials skin care products. The company also provides wellness products, such as LifePak nutritional supplements, ageLOC TR90 weight management system, and Beauty Focus Collagen+. In addition, it is involved in the research and product development of skin care products and nutritional supplements. The company sells its products under the Nu Skin, Pharmanex, and ageLOC brands through retail stores, website, digital platforms, and independent direct sellers and marketers, as well as a service center. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah.

About Lifevantage

LifeVantage Corporation engages in the identification, research, development, formulation, and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management, skin and hair care, bath and body, and targeted relief products. It offers Protandim, a dietary supplement; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids, and vitamin D3; LifeVantage ProBio, a dietary supplement to support gut health; PhysIQ, a weight management system; LifeVantage IC Bright, a supplement to support eye and brain health, reduce eye fatigue and strain, supports cognitive functions, and support normal sleep patterns; Petandim for Dogs, a supplement to combat oxidative stress in dogs; and Axio, a nootropic energy drink mix. The company also provides anti-aging skin care products, including liquid collagen, facial cleansers, perfecting lotions, eye serums, anti-aging creams, hand creams, beauty serum, as well as hair care products, such as invigorating shampoos, nourishing conditioners, and scalp serums under the LifeVantage TrueScience brand name. In addition, it offers bath and body, and targeted relief products, such as body lotion, body wash, body butter, deodorant, soothing balm, and body rub under the TrueScience brand name. It sells its products through its website and network of independent distributors in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore, and the Philippines. The company was founded in 2003 and is headquartered in Lehi, Utah.