Herbalife LTD. (NYSE: HLF) and Nautilus Group, Inc. (The) (NYSE:NLS) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Analyst Recommendations

This is a summary of current ratings and target prices for Herbalife LTD. and Nautilus Group, Inc. (The), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Herbalife LTD. 0 2 2 0 2.50
Nautilus Group, Inc. (The) 0 0 6 0 3.00

Herbalife LTD. currently has a consensus target price of $86.33, suggesting a potential upside of 26.05%. Nautilus Group, Inc. (The) has a consensus target price of $22.67, suggesting a potential upside of 34.52%. Given Nautilus Group, Inc. (The)’s stronger consensus rating and higher possible upside, analysts clearly believe Nautilus Group, Inc. (The) is more favorable than Herbalife LTD..

Valuation & Earnings

This table compares Herbalife LTD. and Nautilus Group, Inc. (The)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Herbalife LTD. $4.42 billion 1.46 $727.70 million $4.76 14.39
Nautilus Group, Inc. (The) $396.86 million 1.31 $52.78 million $0.92 18.32

Herbalife LTD. has higher revenue and earnings than Nautilus Group, Inc. (The). Herbalife LTD. is trading at a lower price-to-earnings ratio than Nautilus Group, Inc. (The), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Herbalife LTD. and Nautilus Group, Inc. (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Herbalife LTD. 9.28% 216.82% 14.15%
Nautilus Group, Inc. (The) 7.25% 17.22% 8.93%

Volatility and Risk

Herbalife LTD. has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Nautilus Group, Inc. (The) has a beta of 2.15, suggesting that its share price is 115% more volatile than the S&P 500.

Institutional & Insider Ownership

97.7% of Nautilus Group, Inc. (The) shares are held by institutional investors. 5.0% of Herbalife LTD. shares are held by insiders. Comparatively, 3.7% of Nautilus Group, Inc. (The) shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Herbalife LTD. beats Nautilus Group, Inc. (The) on 8 of the 14 factors compared between the two stocks.

Herbalife LTD. Company Profile

Herbalife Ltd. is a global nutrition company. The Company develops and sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, as well as personal care products. Its operating segments are based on geographical operations in six regions: North America; Mexico; South and Central America; Europe, the Middle East, and Africa (EMEA); Asia Pacific, and China. The Company categorizes its products into five groups: weight management, targeted nutrition, energy, sports and fitness, outer nutrition, and literature, promotional and other. As of December 31, 2016, it marketed and sold approximately 140 products encompassing over 4,700 stock keeping units (SKUs) globally. Its product categories include meal replacement; protein shakes; drink mixes; dietary and nutritional supplements containing herbs, vitamins, minerals and other natural ingredients; facial skin care; body care; hair care products; sales tools, and educational materials.

Nautilus Group, Inc. (The) Company Profile

Nautilus, Inc. is a consumer fitness products company. The Company operates through two segments: Direct and Retail. Its principal business activities include designing, developing, sourcing and marketing of cardio and strength fitness products and related accessories for consumer use, primarily in the United States and Canada, but also in international markets outside North America. The Direct business offers products directly to consumers through television advertising, catalogs and the Internet. In its Direct business, the Company markets and sells its products, principally Bowflex cardio and strength products, directly to consumers. The Retail business offers its products through a network of independent retail companies and specialty retailers with stores and Websites located in the United States and internationally. In its Retail business, the Company markets and sells a line of consumer fitness equipment under the Nautilus, Octane Fitness, Schwinn, Universal and Bowflex brands.

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