Financial Analysis: Nu Skin Enterprises (NUS) vs. Procter & Gamble Company (The) (PG)
Nu Skin Enterprises (NYSE: NUS) and Procter & Gamble Company (The) (NYSE:PG) are both mid-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
Earnings and Valuation
This table compares Nu Skin Enterprises and Procter & Gamble Company (The)’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Nu Skin Enterprises||$2.18 billion||1.50||$326.95 million||$2.95||20.98|
|Procter & Gamble Company (The)||$65.06 billion||3.64||$17.51 billion||$5.59||16.61|
Procter & Gamble Company (The) has higher revenue and earnings than Nu Skin Enterprises. Procter & Gamble Company (The) 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.
Risk & Volatility
Nu Skin Enterprises has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Procter & Gamble Company (The) has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.
Insider and Institutional Ownership
79.3% of Nu Skin Enterprises shares are owned by institutional investors. Comparatively, 59.3% of Procter & Gamble Company (The) shares are owned by institutional investors. 5.2% of Nu Skin Enterprises shares are owned by company insiders. Comparatively, 0.4% of Procter & Gamble Company (The) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Nu Skin Enterprises and Procter & Gamble Company (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nu Skin Enterprises||7.53%||24.14%||11.26%|
|Procter & Gamble Company (The)||23.56%||19.97%||8.86%|
This is a breakdown of current ratings and target prices for Nu Skin Enterprises and Procter & Gamble Company (The), 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|
|Procter & Gamble Company (The)||2||8||5||0||2.20|
Nu Skin Enterprises presently has a consensus target price of $61.86, indicating a potential downside of 0.05%. Procter & Gamble Company (The) has a consensus target price of $85.85, indicating a potential downside of 7.53%. Given Nu Skin Enterprises’ higher possible upside, equities research analysts plainly believe Nu Skin Enterprises is more favorable than Procter & Gamble Company (The).
Nu Skin Enterprises pays an annual dividend of $1.44 per share and has a dividend yield of 2.3%. Procter & Gamble Company (The) pays an annual dividend of $2.76 per share and has a dividend yield of 3.0%. Nu Skin Enterprises pays out 48.8% of its earnings in the form of a dividend. Procter & Gamble Company (The) pays out 49.4% 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. Nu Skin Enterprises has increased its dividend for 60 consecutive years and Procter & Gamble Company (The) has increased its dividend for 16 consecutive years.
Procter & Gamble Company (The) 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 Procter & Gamble Company (The)
The Procter & Gamble Company is focused on providing branded consumer packaged goods to the consumers across the world. The Company operates through five segments: Beauty; Grooming; Health Care; Fabric & Home Care, and Baby, Feminine & Family Care. The Company sells its products in approximately 180 countries and territories primarily through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, distributors, baby stores, specialty beauty stores, e-commerce, high-frequency stores and pharmacies. The Company owns and operates approximately 20 manufacturing sites located in over 20 states in the United States. In addition, it owns and operates over 100 manufacturing sites in approximately 40 countries. It offers products under the brands, such as Olay, Old Spice, Safeguard, Head & Shoulders, Pantene, Rejoice, Mach3, Prestobarba, Venus, Cascade, Dawn, Febreze, Mr. Clean, Bounty and Charmin.
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