Critical Review: FitLife Brands (NASDAQ:FTLF) versus Lifevantage (NASDAQ:LFVN)

Lifevantage (NASDAQ:LFVN) and FitLife Brands (NASDAQ:FTLF) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Profitability

This table compares Lifevantage and FitLife Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lifevantage	2.78%	21.56%	11.62%
FitLife Brands	6.15%	18.10%	7.63%

Earnings and Valuation

This table compares Lifevantage and FitLife Brands”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lifevantage	$182.59 million	0.42	$5.07 million	$0.40	15.32
FitLife Brands	$81.46 million	1.16	$6.33 million	$0.62	16.29

FitLife Brands has lower revenue, but higher earnings than Lifevantage. Lifevantage is trading at a lower price-to-earnings ratio than FitLife Brands, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Lifevantage and FitLife Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lifevantage	0	2	0	0	2.00
FitLife Brands	0	2	1	0	2.33

Lifevantage presently has a consensus target price of $5.50, suggesting a potential downside of 10.28%. FitLife Brands has a consensus target price of $18.00, suggesting a potential upside of 78.22%. Given FitLife Brands’ stronger consensus rating and higher possible upside, analysts clearly believe FitLife Brands is more favorable than Lifevantage.

Insider and Institutional Ownership

35.3% of Lifevantage shares are held by institutional investors. Comparatively, 2.3% of FitLife Brands shares are held by institutional investors. 22.0% of Lifevantage shares are held by company insiders. Comparatively, 61.7% of FitLife Brands shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

FitLife Brands beats Lifevantage on 9 of the 13 factors compared between the two stocks.

About Lifevantage

LifeVantage Corporation engages in the identification, research, development, formulation, and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management, skin and hair care, bath and body, and targeted relief products. It offers Protandim, a dietary supplement; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids, and vitamin D3; LifeVantage ProBio, a dietary supplement to support gut health; PhysIQ, a weight management system; LifeVantage IC Bright, a supplement to support eye and brain health, reduce eye fatigue and strain, supports cognitive functions, and support normal sleep patterns; Petandim for Dogs, a supplement to combat oxidative stress in dogs; and Axio, a nootropic energy drink mix. The company also provides anti-aging skin care products, including liquid collagen, facial cleansers, perfecting lotions, eye serums, anti-aging creams, hand creams, beauty serum, as well as hair care products, such as invigorating shampoos, nourishing conditioners, and scalp serums under the LifeVantage TrueScience brand name. In addition, it offers bath and body, and targeted relief products, such as body lotion, body wash, body butter, deodorant, soothing balm, and body rub under the TrueScience brand name. It sells its products through its website and network of independent distributors in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore, and the Philippines. The company was founded in 2003 and is headquartered in Lehi, Utah.

About FitLife Brands

FitLife Brands, Inc. provides nutritional supplements for health-conscious consumers in the United States and internationally. The company provides weight loss, sports nutrition, and general health products; sports nutrition products; weight loss and sports nutrition products; sports nutrition and general wellness formulations with an emphasis on natural, vegan, and organic ingredients; and male health and weight loss products, as well as other diet, health, and sports nutrition supplements and related products; and value-oriented sports nutrition and weight loss products. It offers MRC products which includes general health supplements; and natural skincare and beauty products. In addition, it markets its products under the brand names of NDS Nutrition, PMD Sports, SirenLabs, CoreActive, Nutrology, Metis Nutrition, iSatori, BioGenetic Laboratories, Energize, Dr. Tobias, All-Natural Advice, and Maritime Naturals through franchised stores, as well as through retail locations, which include specialty, mass, and online. The company was formerly known as Bond Laboratories, Inc. and changed its name to FitLife Brands, Inc. in September 2013. FitLife Brands, Inc. was incorporated in 2005 and is headquartered in Omaha, Nebraska.