Natural Alternatives International (NASDAQ:NAII – Get Free Report) and Nature’s Sunshine Products (NASDAQ:NATR – Get Free Report) are both small-cap consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.
Institutional and Insider Ownership
32.4% of Natural Alternatives International shares are held by institutional investors. Comparatively, 79.4% of Nature’s Sunshine Products shares are held by institutional investors. 20.8% of Natural Alternatives International shares are held by insiders. Comparatively, 3.1% of Nature’s Sunshine Products shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Natural Alternatives International and Nature’s Sunshine Products’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Natural Alternatives International | -10.13% | -12.21% | -5.30% |
| Nature’s Sunshine Products | 3.68% | 12.88% | 8.17% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Natural Alternatives International | 1 | 0 | 0 | 0 | 1.00 |
| Nature’s Sunshine Products | 0 | 1 | 2 | 0 | 2.67 |
Nature’s Sunshine Products has a consensus price target of $30.50, suggesting a potential upside of 112.69%. Given Nature’s Sunshine Products’ stronger consensus rating and higher probable upside, analysts plainly believe Nature’s Sunshine Products is more favorable than Natural Alternatives International.
Valuation and Earnings
This table compares Natural Alternatives International and Nature’s Sunshine Products”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Natural Alternatives International | $129.86 million | 0.10 | -$13.57 million | ($2.39) | -0.90 |
| Nature’s Sunshine Products | $480.14 million | 0.53 | $19.52 million | $1.01 | 14.20 |
Nature’s Sunshine Products has higher revenue and earnings than Natural Alternatives International. Natural Alternatives International is trading at a lower price-to-earnings ratio than Nature’s Sunshine Products, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Natural Alternatives International has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Nature’s Sunshine Products has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.
Summary
Nature’s Sunshine Products beats Natural Alternatives International on 13 of the 14 factors compared between the two stocks.
About Natural Alternatives International
Natural Alternatives International, Inc. engages in formulating, manufacturing, and marketing nutritional supplements in the United States, Europe, Australia, Asia, Mexico, and Canada. The company operates in two segments, Private-Label Contract Manufacturing, and Patent and Trademark Licensing. It offers private-label contract manufacturing services to companies that market and distribute vitamins, minerals, herbal, and other nutritional supplements, as well as other health care products. The company also provides strategic partnering services, such as customized product formulation, clinical study design and support, manufacturing, marketing support, international regulatory and label law compliance, international product registration, packaging in multiple formats and labeling design, scientific research, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management, packaging and delivery system design, regulatory review, and international product registration assistance. In addition, it sells beta-alanine ingredient under the CarnoSyn and SR CarnoSyn names. The company manufactures products in various forms, including capsules, tablets, chewable wafers, and powders. Its private-label contract manufacturing customers include companies that market nutritional supplements through direct sales marketing channels, direct to consumer e-commerce channels, and retail stores. The company was founded in 1980 and is headquartered in Carlsbad, California.
About Nature’s Sunshine Products
Nature’s Sunshine Products, Inc., a natural health and wellness company, manufactures and sells nutritional and personal care products in Asia, Europe, North America, Latin America, and internationally. It offers general health products related to blood sugar support, bone health, cellular health, cognitive function, joint health, mood, sexual health, sleep, sports and energy, and vision. The company also provides immunity, cardiovascular, and digestive products; and personal care products, such as oils and lotions, aloe vera gels, herbal shampoos, herbal skin treatment, toothpaste, and skin cleansers, as well as weight management products. It offers its products under the Nature’s Sunshine and Synergy WorldWide brands through a sales force of independent consultants. Nature’s Sunshine Products, Inc. was founded in 1972 and is headquartered in Lehi, Utah.
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