Ceconomy (OTCMKTS:MTTRY) & Interparfums (NASDAQ:IPAR) Head-To-Head Comparison

Interparfums (NASDAQ:IPAR) and Ceconomy (OTCMKTS:MTTRY) are both mid-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Insider and Institutional Ownership

55.6% of Interparfums shares are owned by institutional investors. 43.7% of Interparfums shares are owned 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.

Analyst Ratings

This is a summary of current ratings and price targets for Interparfums and Ceconomy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interparfums	0	1	5	1	3.00
Ceconomy	0	0	0	1	4.00

Interparfums presently has a consensus price target of $145.60, indicating a potential upside of 77.90%. Given Interparfums’ higher probable upside, equities research analysts clearly believe Interparfums is more favorable than Ceconomy.

Volatility and Risk

Interparfums has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, Ceconomy has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Dividends

Interparfums pays an annual dividend of $3.20 per share and has a dividend yield of 3.9%. Ceconomy pays an annual dividend of $0.02 per share and has a dividend yield of 2.1%. Interparfums pays out 62.6% of its earnings in the form of a dividend. Ceconomy pays out 28.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Interparfums has raised its dividend for 4 consecutive years. Interparfums is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Interparfums and Ceconomy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interparfums	$1.46 billion	1.79	$164.36 million	$5.11	16.02
Ceconomy	$24.34 billion	0.09	$82.44 million	$0.07	13.54

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

Profitability

This table compares Interparfums and Ceconomy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interparfums	11.03%	16.45%	11.14%
Ceconomy	0.71%	38.36%	2.07%

Summary

Interparfums beats Ceconomy on 13 of the 17 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 Ceconomy

Ceconomy AG, together with its subsidiaries, engages in the consumer electronics retail business. It operates stores under the MediaMarkt and Saturn brands. The company offers professional assistance for the installation, connection, and troubleshooting of electronic devices at home under the Deutsche Technikberatung brand. It operates in Germany, Austria, Switzerland, and Hungary, as well as in Western, Southern, and Eastern Europe. Ceconomy AG is based in Düsseldorf, Germany.