Head to Head Analysis: e.l.f. Beauty (NYSE:ELF) versus Medifast (NYSE:MED)

e.l.f. Beauty (NYSE:ELF) and Medifast (NYSE:MED) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Valuation and Earnings

This table compares e.l.f. Beauty and Medifast”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
e.l.f. Beauty	$1.64 billion	4.29	$26.32 million	$1.45	81.88
Medifast	$385.79 million	0.38	-$18.67 million	($3.69)	-3.57

e.l.f. Beauty has higher revenue and earnings than Medifast. Medifast is trading at a lower price-to-earnings ratio than e.l.f. Beauty, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

e.l.f. Beauty has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Medifast has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for e.l.f. Beauty and Medifast, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
e.l.f. Beauty	1	5	9	3	2.78
Medifast	1	1	0	1	2.33

e.l.f. Beauty currently has a consensus target price of $118.88, indicating a potential upside of 0.13%. Medifast has a consensus target price of $12.00, indicating a potential downside of 9.03%. Given e.l.f. Beauty’s stronger consensus rating and higher possible upside, research analysts clearly believe e.l.f. Beauty is more favorable than Medifast.

Insider and Institutional Ownership

92.4% of e.l.f. Beauty shares are held by institutional investors. Comparatively, 95.5% of Medifast shares are held by institutional investors. 3.5% of e.l.f. Beauty shares are held by company insiders. Comparatively, 3.7% of Medifast shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares e.l.f. Beauty and Medifast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
e.l.f. Beauty	4.47%	16.40%	7.89%
Medifast	-13.64%	-6.90%	-5.34%

Summary

e.l.f. Beauty beats Medifast on 12 of the 14 factors compared between the two stocks.

About e.l.f. Beauty

e.l.f. Beauty, Inc. is a beauty company that develops, markets and sells cosmetics and skin-care products. Its portfolio includes e.l.f. Cosmetics and e.l.f. SKIN, as well as brands such as Naturium, Well People and Keys Soulcare. Products include makeup, skin-care treatments and related beauty items. Founded in 2004, the company sells through its own websites and retail partners, including mass-market and specialty beauty stores. Its products are available in the United States and international markets.

About Medifast

Medifast, Inc. (NYSE: MED) is a health and wellness company that provides weight-management products, programs and support services. Its primary brand, OPTAVIA, offers meal-replacement products, including shakes, bars, soups and other portion-controlled foods, along with structured plans intended to help customers establish healthier eating and lifestyle habits. The company distributes its products primarily through an independent network of coaches who provide guidance, accountability and support to clients.