Head to Head Comparison: Matthews International Corporation (MATW) versus Avon Products (AVP)
Matthews International Corporation (NASDAQ: MATW) and Avon Products (NYSE:AVP) are both small-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.
Matthews International Corporation pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Avon Products does not pay a dividend. Matthews International Corporation pays out 28.5% of its earnings in the form of a dividend. Matthews International Corporation has increased its dividend for 5 consecutive years.
Institutional & Insider Ownership
79.0% of Matthews International Corporation shares are owned by institutional investors. Comparatively, 85.4% of Avon Products shares are owned by institutional investors. 3.9% of Matthews International Corporation shares are owned by company insiders. Comparatively, 1.3% of Avon Products shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Matthews International Corporation has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Avon Products has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.
This table compares Matthews International Corporation and Avon Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Matthews International Corporation||5.17%||16.23%||5.40%|
Earnings and Valuation
This table compares Matthews International Corporation and Avon Products’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Matthews International Corporation||$1.50 billion||1.29||$190.96 million||$2.39||25.23|
|Avon Products||$5.71 billion||0.20||$385.60 million||($0.19)||-13.79|
Avon Products has higher revenue and earnings than Matthews International Corporation. Avon Products is trading at a lower price-to-earnings ratio than Matthews International Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Matthews International Corporation and Avon Products, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Matthews International Corporation||0||0||3||0||3.00|
Matthews International Corporation currently has a consensus price target of $83.50, indicating a potential upside of 38.47%. Avon Products has a consensus price target of $4.58, indicating a potential upside of 74.94%. Given Avon Products’ higher probable upside, analysts plainly believe Avon Products is more favorable than Matthews International Corporation.
Matthews International Corporation beats Avon Products on 10 of the 16 factors compared between the two stocks.
About Matthews International Corporation
Matthews International Corporation is a provider of brand solutions, memorialization products and industrial technologies. The Company operates through three segments: SGK Brand Solutions, Memorialization and Industrial Technologies. The SGK Brand Solutions segment provides brand development, deployment and delivery (consisting of brand management, printing plates and cylinders, pre-media services and imaging services for consumer packaged goods and retail customers, merchandising display systems, and marketing and design services). The Memorialization segment manufactures and markets a line of memorialization products used primarily in cemeteries, funeral homes and crematories. The Industrial Technologies segment designs, manufactures and distributes a range of marking, coding and industrial automation solutions, order fulfillment systems and related consumables.
About Avon Products
Avon Products, Inc. is a manufacturer and marketer of beauty and related products. The Company’s segments include Europe, Middle East & Africa; South Latin America; North Latin America, and Asia Pacific. Its product categories are Beauty, and Fashion and Home. Beauty consists of skincare (which includes personal care), fragrance and color (cosmetics). Fashion and Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products. The Company’s products include Anew Ultimate Supreme Advanced Performance Creme, Anew Vitale Visible Perfection Blurring Treatment, Big & Multiplied Volume Mascara, Avon True Perfectly Matte Lipstick, Avon Life for Him and for Her Fragrances, Far Away Infinity Fragrance and Avon Nutra Effects body collection with Active Seed Complex. The Company primarily sells its products to the consumer through the direct-selling channel.
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