Herbalife LTD. (NYSE: HLF) is one of 32 publicly-traded companies in the “Personal Products” industry, but how does it compare to its competitors? We will compare Herbalife LTD. to similar companies based on the strength of its risk, profitability, valuation, dividends, institutional ownership, earnings and analyst recommendations.

Valuation and Earnings

This table compares Herbalife LTD. and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Herbalife LTD. $4.42 billion $727.70 million 14.21
Herbalife LTD. Competitors $14.65 billion $2.94 billion 14.12

Herbalife LTD.’s competitors have higher revenue and earnings than Herbalife LTD.. Herbalife LTD. is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

57.5% of shares of all “Personal Products” companies are held by institutional investors. 5.0% of Herbalife LTD. shares are held by company insiders. Comparatively, 15.4% of shares of all “Personal Products” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Herbalife LTD. and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Herbalife LTD. 9.28% 216.82% 14.15%
Herbalife LTD. Competitors 6.15% 158.39% 7.91%

Volatility and Risk

Herbalife LTD. has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Herbalife LTD.’s competitors have a beta of 1.09, suggesting that their average stock price is 9% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Herbalife LTD. and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Herbalife LTD. 0 2 2 0 2.50
Herbalife LTD. Competitors 366 1099 1247 28 2.34

Herbalife LTD. currently has a consensus price target of $86.33, suggesting a potential upside of 27.60%. As a group, “Personal Products” companies have a potential upside of 0.91%. Given Herbalife LTD.’s stronger consensus rating and higher possible upside, analysts clearly believe Herbalife LTD. is more favorable than its competitors.

Summary

Herbalife LTD. beats its competitors on 8 of the 13 factors compared.

Herbalife LTD. Company Profile

Herbalife Ltd. is a global nutrition company. The Company develops and sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, as well as personal care products. Its operating segments are based on geographical operations in six regions: North America; Mexico; South and Central America; Europe, the Middle East, and Africa (EMEA); Asia Pacific, and China. The Company categorizes its products into five groups: weight management, targeted nutrition, energy, sports and fitness, outer nutrition, and literature, promotional and other. As of December 31, 2016, it marketed and sold approximately 140 products encompassing over 4,700 stock keeping units (SKUs) globally. Its product categories include meal replacement; protein shakes; drink mixes; dietary and nutritional supplements containing herbs, vitamins, minerals and other natural ingredients; facial skin care; body care; hair care products; sales tools, and educational materials.

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