Herbalife LTD. (HLF) vs. The Competition Financial Analysis
Herbalife LTD. (NYSE: HLF) is one of 32 publicly-traded companies in the “Personal Products” industry, but how does it weigh in compared to its competitors? We will compare Herbalife LTD. to related companies based on the strength of its profitability, risk, dividends, valuation, earnings, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares Herbalife LTD. and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Herbalife LTD.||$4.42 billion||$727.70 million||14.22|
|Herbalife LTD. Competitors||$14.67 billion||$2.94 billion||14.19|
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.
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. Competitors||-22.64%||150.10%||6.55%|
Institutional and Insider Ownership
57.5% of shares of all “Personal Products” companies are owned by institutional investors. 5.0% of Herbalife LTD. shares are owned by company insiders. Comparatively, 15.3% of shares of all “Personal Products” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Herbalife LTD. has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Herbalife LTD.’s competitors have a beta of 1.09, meaning that their average stock price is 9% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Herbalife LTD. and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Herbalife LTD. Competitors||313||1010||1219||23||2.37|
Herbalife LTD. presently has a consensus target price of $86.67, suggesting a potential upside of 28.02%. As a group, “Personal Products” companies have a potential downside of 0.73%. Given Herbalife LTD.’s stronger consensus rating and higher probable upside, analysts plainly believe Herbalife LTD. is more favorable than its competitors.
Herbalife LTD. beats its competitors on 7 of the 13 factors compared.
About Herbalife LTD.
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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