Head to Head Survey: Coty (NYSE:COTY) and Inter Parfums (IPAR)
Inter Parfums (NASDAQ: IPAR) and Coty (NYSE:COTY) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitabiliy, valuation, risk, institutional ownership and earnings.
Insider & Institutional Ownership
55.6% of Inter Parfums shares are held by institutional investors. Comparatively, 66.4% of Coty shares are held by institutional investors. 45.5% of Inter Parfums shares are held by insiders. Comparatively, 16.1% of Coty shares are held by 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.
Risk & Volatility
Inter Parfums has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, Coty has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500.
Valuation & Earnings
This table compares Inter Parfums and Coty’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Inter Parfums||$552.61 million||2.07||$86.29 million||$1.27||28.86|
|Coty||$6.48 billion||2.16||$991.00 million||($0.25)||-75.04|
Coty has higher revenue and earnings than Inter Parfums. Coty is trading at a lower price-to-earnings ratio than Inter Parfums, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Inter Parfums and Coty, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Inter Parfums presently has a consensus price target of $39.00, indicating a potential upside of 6.41%. Coty has a consensus price target of $22.89, indicating a potential upside of 22.03%. Given Coty’s higher probable upside, analysts clearly believe Coty is more favorable than Inter Parfums.
This table compares Inter Parfums and Coty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Inter Parfums pays an annual dividend of $0.68 per share and has a dividend yield of 1.9%. Coty pays an annual dividend of $0.50 per share and has a dividend yield of 2.7%. Inter Parfums pays out 53.5% of its earnings in the form of a dividend. Coty pays out -200.0% 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. Inter Parfums has raised its dividend for 2 consecutive years. Coty is clearly the better dividend stock, given its higher yield and lower payout ratio.
Coty beats Inter Parfums on 9 of the 17 factors compared between the two stocks.
Inter Parfums Company Profile
Inter Parfums, Inc. operates in the fragrance business. The Company manufactures, markets and distributes an array of fragrance and fragrance related products. It operates through two segments: European based operations and United States based operations. The European Operations segment produces and distributes its fragrance products under license agreements with brand owners. It has a portfolio of prestige brands, which include Balmain, Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Lanvin, Paul Smith, S.T. Dupont, Repetto, Rochas, and Van Cleef & Arpels. Its prestige brand fragrance products are also marketed through its United States operations. These fragrance products are sold under various names, which include Abercrombie & Fitch, Agent Provocateur, Anna Sui, bebe, Dunhill, French Connection, Oscar de la Rent and Shanghai Tang brands. The Company sells its products to department stores, perfumeries, specialty stores, and domestic and international wholesalers and distributors.
Coty Company Profile
Coty Inc. is a beauty company. The Company operates through four segments: Fragrances, Color Cosmetics, Skin & Body Care and Brazil Acquisition. Its fragrance products include a range of men’s and women’s products. Its fragrance brands include Calvin Klein, Marc Jacobs, Davidoff, Chloe, Balenciaga, Beyonce, Bottega Veneta, Miu Miu and Roberto Cavalli. Its color cosmetics products include lip, eye, nail and facial color products. The brands in its Color Cosmetics segment include Bourjois, Rimmel, Sally Hansen and OPI. Its skin & body care products include shower gels, deodorants, skin care and sun treatment products. Its skin & body care brands are adidas, Lancaster, philosophy and Playboy. The Company, through Hypermarcas S.A., engages in personal care and beauty business. The Brazil Acquisition segment includes product groupings, such as skin care, nail care, deodorants and hair care products. It operates in the Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific.
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