Critical Contrast: Agape ATP (NASDAQ:ATPC) & Lifevantage (NASDAQ:LFVN)

Lifevantage (NASDAQ:LFVN) and Agape ATP (NASDAQ:ATPC) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

Lifevantage has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Agape ATP has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Insider and Institutional Ownership

35.3% of Lifevantage shares are held by institutional investors. Comparatively, 0.0% of Agape ATP shares are held by institutional investors. 13.6% of Lifevantage shares are held by company insiders. Comparatively, 2.0% of Agape ATP shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Lifevantage and Agape ATP, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lifevantage	1	2	0	0	1.67
Agape ATP	1	0	0	0	1.00

Lifevantage currently has a consensus target price of $5.50, suggesting a potential upside of 9.67%. Given Lifevantage’s stronger consensus rating and higher possible upside, equities analysts plainly believe Lifevantage is more favorable than Agape ATP.

Profitability

This table compares Lifevantage and Agape ATP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lifevantage	1.58%	16.35%	8.90%
Agape ATP	-85.94%	-5.47%	-4.94%

Valuation and Earnings

This table compares Lifevantage and Agape ATP”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lifevantage	$172.14 million	0.37	$5.07 million	$0.21	23.88
Agape ATP	$1.52 million	0.92	-$2.28 million	($0.74)	-1.90

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

Summary

Lifevantage beats Agape ATP on 12 of the 13 factors compared between the two stocks.

About Lifevantage

LifeVantage Corporation is a health and wellness company that develops, markets and distributes dietary supplements and personal-care products. Its product portfolio is designed to support areas such as cellular health, antioxidant defenses, energy, nutrition and skin care. The company’s principal brands have included Protandim, a line of dietary supplements; TrueScience, a skin-care and wellness brand; and Petandim, products formulated for pets. LifeVantage primarily uses a direct-selling business model, distributing its products through independent sales representatives and online channels.

About Agape ATP

Agape ATP Corporation is a health and wellness company focused on providing personalized healthcare-related services, wellness programs and nutritional products. Its offerings are designed to support preventive health management, healthy aging and overall well-being. The company serves customers primarily through its operations in Malaysia and has marketed products and services connected with health assessments, nutrition and lifestyle management. Its business model combines wellness consultations with health-oriented consumer products and services.