GNC Holdings (NYSE: GNC) and Boulder Brands (NASDAQ:BDBD) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Institutional and Insider Ownership

79.5% of GNC Holdings shares are owned by institutional investors. 1.9% of GNC Holdings shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares GNC Holdings and Boulder Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GNC Holdings -14.56% 285.93% 4.49%
Boulder Brands 0.61% 0.59% 0.50%

Valuation and Earnings

This table compares GNC Holdings and Boulder Brands’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
GNC Holdings $2.48 billion 0.27 $278.86 million ($5.30) -1.85
Boulder Brands N/A N/A N/A N/A N/A

GNC Holdings has higher revenue and earnings than Boulder Brands.

Analyst Recommendations

This is a summary of current ratings and recommmendations for GNC Holdings and Boulder Brands, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GNC Holdings 5 2 0 0 1.29
Boulder Brands 0 0 0 0 N/A

GNC Holdings presently has a consensus target price of $9.67, suggesting a potential downside of 1.16%. Given GNC Holdings’ higher possible upside, equities research analysts clearly believe GNC Holdings is more favorable than Boulder Brands.

Dividends

GNC Holdings pays an annual dividend of $0.40 per share and has a dividend yield of 4.1%. Boulder Brands does not pay a dividend. GNC Holdings pays out -7.5% of its earnings in the form of a dividend. GNC Holdings has raised its dividend for 4 consecutive years.

Summary

GNC Holdings beats Boulder Brands on 9 of the 10 factors compared between the two stocks.

GNC Holdings Company Profile

GNC Holdings, Inc. is a specialty retailer of health, wellness and performance products, which include protein, performance supplements, weight management supplements, vitamins, herbs and greens, wellness supplements, health and beauty, food and drink and other general merchandise. The Company’s operations consist of purchasing raw materials, formulating and manufacturing products and selling the finished products. It operates in three segments: U.S. and Canada, International and Manufacturing/Wholesale. Its U.S. and Canada segment generates revenues primarily from sales of products to customers at its Company-owned stores in the United States, Canada and Puerto Rico, through its Websites, GNC.com and LuckyVitamin.com. Its International segment generates revenue primarily to its international franchisees. Its Manufacturing/Wholesale segment comprises its manufacturing operations in South Carolina and its wholesale partner relationships.

Boulder Brands Company Profile

Boulder Brands, Inc. is a natural consumer packaged food company. The Company’s health and wellness platform consists of brands that target specific health trends: the Glutino Food Group and Udi’s Healthy Foods, LLC’s Gluten Free brands for gluten free diets; the Earth Balance brand for plant-based diets; the Level Life brand for diabetic diets; EVOL Food branded foods for consumers seeking convenient foods made with pure and simple ingredients, and the Smart Balance brand for heart healthier diets. The Company distributes its products in all retail channels, including natural, grocery, club and mass merchandise. The Company also has a presence in the foodservice and industrial channels. The Company operates in two segments: Natural and Balance. The Natural segment consists of Udi’s, Glutino and EVOL branded products. The Balance segment consists of Smart Balance, Earth Balance and Level Life branded products.

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