Head-To-Head Analysis: B&M European Value Retail (OTCMKTS:BMRRY) vs. Interparfums (NASDAQ:IPAR)

Interparfums (NASDAQ:IPAR) and B&M European Value Retail (OTCMKTS:BMRRY) are both mid-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Risk & Volatility

Interparfums has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, B&M European Value Retail has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Profitability

This table compares Interparfums and B&M European Value Retail’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interparfums	11.31%	15.76%	10.95%
B&M European Value Retail	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations for Interparfums and B&M European Value Retail, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interparfums	0	3	5	1	2.78
B&M European Value Retail	0	3	0	2	2.80

Interparfums presently has a consensus target price of $119.14, indicating a potential upside of 14.34%. Given Interparfums’ higher probable upside, equities research analysts clearly believe Interparfums is more favorable than B&M European Value Retail.

Institutional & Insider Ownership

55.6% of Interparfums shares are held by institutional investors. Comparatively, 0.0% of B&M European Value Retail shares are held by institutional investors. 43.7% of Interparfums shares are held by 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.

Valuation & Earnings

This table compares Interparfums and B&M European Value Retail”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interparfums	$1.49 billion	2.24	$164.36 million	$5.24	19.89
B&M European Value Retail	$7.11 billion	0.36	$407.01 million	N/A	N/A

B&M European Value Retail has higher revenue and earnings than Interparfums.

Dividends

Interparfums pays an annual dividend of $3.20 per share and has a dividend yield of 3.1%. B&M European Value Retail pays an annual dividend of $0.24 per share and has a dividend yield of 2.4%. Interparfums pays out 61.1% of its earnings in the form of a dividend. Interparfums has increased its dividend for 4 consecutive years. Interparfums is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Interparfums beats B&M European Value Retail on 11 of the 16 factors compared between the two stocks.

About Interparfums

Inter Parfums, Inc., together with its subsidiaries, manufactures, markets, and distributes a range of fragrances and fragrance related products in the United States and internationally. It operates in two segments, European Based Operations and United States Based Operations. The company offers its fragrance and cosmetic products under the Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lanvin, Moncler, Montblanc, Rochas, S.T. Dupont, Van Cleef & Arpels, Abercrombie & Fitch, Anna Sui, Donna Karan, DKNY, Emanual Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, Ungaro, and Roberto Cavalli brands, as well as French Connection, Intimate, and Dunhill, Lacoste names. It sells its products to department stores, perfumeries, specialty stores, duty free shops, and domestic and international wholesalers, and distributors, as well as through e-commerce. The company was formerly known as Jean Philippe Fragrances, Inc. and changed its name to Inter Parfums, Inc. in July 1999. Inter Parfums, Inc. was founded in 1982 and is headquartered in New York, New York.

About B&M European Value Retail

B&M European Value Retail S.A. operates general merchandise and grocery stores. The company operates a chain of stores under the B&M, Heron Foods, and B&M Express in the United Kingdom; and stores under the B&M brand in France. It also provides property management services. The company was founded in 1978 and is based in Munsbach, Luxembourg.