Contrasting Synergy CHC (NASDAQ:SNYR) and e.l.f. Beauty (NYSE:ELF)

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for e.l.f. Beauty and Synergy CHC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
e.l.f. Beauty	1	6	10	1	2.61
Synergy CHC	1	1	2	0	2.25

e.l.f. Beauty currently has a consensus price target of $93.75, suggesting a potential downside of 3.22%. Synergy CHC has a consensus price target of $6.25, suggesting a potential upside of 6,768.13%. Given Synergy CHC’s higher probable upside, analysts clearly believe Synergy CHC is more favorable than e.l.f. Beauty.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
e.l.f. Beauty	3.38%	14.07%	6.81%
Synergy CHC	-60.02%	N/A	-30.30%

Insider and Institutional Ownership

92.4% of e.l.f. Beauty shares are owned by institutional investors. 3.5% of e.l.f. Beauty shares are owned by insiders. Comparatively, 32.9% of Synergy CHC shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

e.l.f. Beauty has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Synergy CHC has a beta of -0.25, indicating that its stock price is 125% less volatile than the S&P 500.

Earnings & Valuation

This table compares e.l.f. Beauty and Synergy CHC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
e.l.f. Beauty	$1.64 billion	3.49	$26.32 million	$1.00	96.87
Synergy CHC	$30.38 million	0.05	-$12.34 million	($1.40)	-0.07

e.l.f. Beauty has higher revenue and earnings than Synergy CHC. Synergy CHC 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.

Summary

e.l.f. Beauty beats Synergy CHC on 13 of the 15 factors compared between the two stocks.

About e.l.f. Beauty

e.l.f. Beauty, Inc. is a holding company, which engages in the provision of inclusive, accessible, clean, vegan and cruelty free cosmetics and skin care products. The company focuses on the e-commerce, national retailers and international business channels. Its brands include elf, elf skin, WELL People and KEYS soulcare. The company was founded in 2004 and is headquartered in Oakland, CA.

About Synergy CHC

Synergy CHC Corp. engages in the marketing and distribution of branded health and wellness products. The company was founded on December 29, 2010 and is headquartered in Westbrook, ME.