Contrasting Elizabeth Arden (NASDAQ:RDEN) & Inter Parfums (IPAR)
Elizabeth Arden (NASDAQ: RDEN) and Inter Parfums (NASDAQ:IPAR) are both non-cyclical consumer goods & services companies, but which is the superior business? We will compare the two companies based on the strength of their profitabiliy, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Insider & Institutional Ownership
70.7% of Elizabeth Arden shares are owned by institutional investors. Comparatively, 55.1% of Inter Parfums shares are owned by institutional investors. 15.2% of Elizabeth Arden shares are owned by company insiders. Comparatively, 45.5% of Inter Parfums shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Elizabeth Arden and Inter Parfums’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Inter Parfums||$552.61 million||2.04||$86.29 million||$1.27||28.54|
Inter Parfums has higher revenue and earnings than Elizabeth Arden. Elizabeth Arden 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 table compares Elizabeth Arden and Inter Parfums’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for Elizabeth Arden and Inter Parfums, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Elizabeth Arden currently has a consensus target price of $14.00, indicating a potential upside of 0.07%. Inter Parfums has a consensus target price of $39.00, indicating a potential upside of 7.59%. Given Inter Parfums’ stronger consensus rating and higher probable upside, analysts plainly believe Inter Parfums is more favorable than Elizabeth Arden.
Inter Parfums pays an annual dividend of $0.68 per share and has a dividend yield of 1.9%. Elizabeth Arden does not pay a dividend. Inter Parfums pays out 53.5% of its earnings in the form of a dividend.
Risk & Volatility
Elizabeth Arden has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Inter Parfums has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.
Inter Parfums beats Elizabeth Arden on 11 of the 13 factors compared between the two stocks.
About Elizabeth Arden
Elizabeth Arden, Inc. is a global beauty products company with a portfolio of fragrance, skin care and cosmetics brands. The Company’s segments include North America and International. The Company’s North America segment sells its portfolio of owned, licensed and distributed brands, including the Elizabeth Arden products, to retailers, mass retailers and distributors in the United States, Canada and Puerto Rico, and also includes its direct to consumer business, which consists of its Elizabeth Arden branded retail outlet stores and its e-commerce business in North America. The Company’s North America segment also sells Elizabeth Arden products through the Red Door Spa beauty salons and spas. The Company’s International segment sells its portfolio of owned and licensed brands, including its Elizabeth Arden products, to perfumeries, boutiques, department stores, travel retail outlets and distributors in approximately 120 countries outside of North America.
About Inter Parfums
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.
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