Financial Analysis: Nu Skin Enterprises (NYSE:NUS) vs. USANA Health Sciences (USNA)
Nu Skin Enterprises (NYSE: NUS) and USANA Health Sciences (NYSE:USNA) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitabiliy, risk, earnings and institutional ownership.
Volatility & Risk
Nu Skin Enterprises has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, USANA Health Sciences has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Nu Skin Enterprises and USANA Health Sciences, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nu Skin Enterprises||2||2||3||0||2.14|
|USANA Health Sciences||0||1||1||0||2.50|
Nu Skin Enterprises presently has a consensus target price of $61.00, suggesting a potential downside of 1.85%. USANA Health Sciences has a consensus target price of $112.50, suggesting a potential upside of 77.30%. Given USANA Health Sciences’ stronger consensus rating and higher possible upside, analysts clearly believe USANA Health Sciences is more favorable than Nu Skin Enterprises.
Insider and Institutional Ownership
85.5% of Nu Skin Enterprises shares are held by institutional investors. Comparatively, 44.3% of USANA Health Sciences shares are held by institutional investors. 5.2% of Nu Skin Enterprises shares are held by company insiders. Comparatively, 53.2% of USANA Health Sciences shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Nu Skin Enterprises and USANA Health Sciences’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nu Skin Enterprises||7.48%||23.45%||10.95%|
|USANA Health Sciences||9.71%||31.84%||22.35%|
Nu Skin Enterprises pays an annual dividend of $1.44 per share and has a dividend yield of 2.3%. USANA Health Sciences does not pay a dividend. Nu Skin Enterprises pays out 48.5% of its earnings in the form of a dividend. Nu Skin Enterprises has raised its dividend for 16 consecutive years.
Earnings and Valuation
This table compares Nu Skin Enterprises and USANA Health Sciences’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Nu Skin Enterprises||$2.24 billion||1.47||$342.29 million||$2.97||20.93|
|USANA Health Sciences||$1.02 billion||1.53||$151.43 million||$3.97||16.00|
Nu Skin Enterprises has higher revenue and earnings than USANA Health Sciences. USANA Health Sciences is trading at a lower price-to-earnings ratio than Nu Skin Enterprises, indicating that it is currently the more affordable of the two stocks.
USANA Health Sciences beats Nu Skin Enterprises on 9 of the 17 factors compared between the two stocks.
About Nu Skin Enterprises
Nu Skin Enterprises, Inc. is a direct selling company that develops and distributes personal care products and nutritional supplements, and a range of other products and services. The Company offers anti-aging personal care products and nutritional supplements under its Nu Skin and Pharmanex brands. The Nu Skin brand offers a range of products, including ageLOC Me customized skin care system, ageLOC Spa systems and ageLOC Transformation anti-aging skin care system. The Pharmanex product line includes ageLOC Youth nutritional supplement, ageLOC TR90 weight management and body shaping system, and LifePak nutritional supplements. The Company has operations in various geographic regions, including Greater China, North Asia, Americas, South Asia/Pacific, and Europe, the Middle East and Africa (EMEA). It is focused on offering ageLOC Youth nutritional supplement and ageLOC Me personalized skin care system. The Company also offers household products and technology services.
About USANA Health Sciences
USANA Health Sciences, Inc. develops and manufactures science-based nutritional and personal care products. The Company operates as a direct selling company in two geographic regions: Americas and Europe, and Asia Pacific, which includes three sub-regions: Southeast Asia Pacific, Greater China and North Asia. Its product lines include USANA Nutritionals Essentials, Optimizers, Foods, Sense-beautiful science and All Other. Its USANA Nutritionals Essentials product line includes vitamin and mineral supplements that provide a foundation of total body nutrition for every age group beginning with children of approximately one year. Its Optimizers product line consists of targeted supplements designed to meet individual health and nutritional needs. Its Sense-beautiful science product line includes science-based, personal care products that support skin and hair by providing topical nourishment, moisturization and protection.
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