Head-To-Head Contrast: Unilever NV (UN) & Nu Skin Enterprises (NUS)
Unilever NV (NYSE: UN) and Nu Skin Enterprises (NYSE:NUS) are both mid-cap non-cyclical consumer goods & services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.
Unilever NV pays an annual dividend of $1.69 per share and has a dividend yield of 3.0%. Nu Skin Enterprises pays an annual dividend of $1.44 per share and has a dividend yield of 2.2%. Unilever NV pays out 70.4% of its earnings in the form of a dividend. Nu Skin Enterprises pays out 52.7% 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. Unilever NV has raised its dividend for 16 consecutive years. Unilever NV is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of recent ratings and target prices for Unilever NV and Nu Skin Enterprises, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nu Skin Enterprises||2||2||2||0||2.00|
Nu Skin Enterprises has a consensus price target of $60.67, suggesting a potential downside of 8.11%. Given Nu Skin Enterprises’ higher possible upside, analysts plainly believe Nu Skin Enterprises is more favorable than Unilever NV.
Earnings & Valuation
This table compares Unilever NV and Nu Skin Enterprises’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Unilever NV||$58.34 billion||1.67||$5.74 billion||$2.40||23.72|
|Nu Skin Enterprises||$2.21 billion||1.57||$143.08 million||$2.73||24.18|
Unilever NV has higher revenue and earnings than Nu Skin Enterprises. Unilever NV is trading at a lower price-to-earnings ratio than Nu Skin Enterprises, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
8.9% of Unilever NV shares are held by institutional investors. Comparatively, 79.3% of Nu Skin Enterprises shares are held by institutional investors. 5.2% of Nu Skin Enterprises shares are held 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.
This table compares Unilever NV and Nu Skin Enterprises’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nu Skin Enterprises||6.97%||22.38%||10.29%|
Risk and Volatility
Unilever NV has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Nu Skin Enterprises has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.
Nu Skin Enterprises beats Unilever NV on 9 of the 16 factors compared between the two stocks.
About Unilever NV
Unilever N.V. is a fast-moving consumer goods (FMCG) company. The Company’s segments include Personal Care, which primarily includes sales of skin care and hair care products, deodorants and oral care products; Foods, which primarily includes sales of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads; Home Care, which primarily includes sales of home care products, such as powders, liquids and capsules, soap bars and a range of cleaning products, and Refreshment, which primarily includes sales of ice cream and tea-based beverages. The Company’s geographical segments include Asia/AMET/RUB, The Americas and Europe. Its brands include Axe, Dirt is Good (Omo), Dove, Family Goodness (Rama), Heartbrand (Wall’s), Hellmann’s, Knorr, Lipton, Lux, Magnum, Rexona, Sunsilk and Surf. The Company operates in more than 100 countries, selling its products in more than 190 countries. The Company operates approximately 310 factories in over 70 countries.
About Nu Skin Enterprises
Nu Skin Enterprises, Inc. is a direct selling company that develops and distributes personal care products and nutritional supplements, and a range of other products and services. The Company offers anti-aging personal care products and nutritional supplements under its Nu Skin and Pharmanex brands. The Nu Skin brand offers a range of products, including ageLOC Me customized skin care system, ageLOC Spa systems and ageLOC Transformation anti-aging skin care system. The Pharmanex product line includes ageLOC Youth nutritional supplement, ageLOC TR90 weight management and body shaping system, and LifePak nutritional supplements. The Company has operations in various geographic regions, including Greater China, North Asia, Americas, South Asia/Pacific, and Europe, the Middle East and Africa (EMEA). It is focused on offering ageLOC Youth nutritional supplement and ageLOC Me personalized skin care system. The Company also offers household products and technology services.
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