Natura &Co (NYSE:NTCOY) & Inter Parfums (NASDAQ:IPAR) Critical Analysis

Natura &Co (NYSE:NTCOY) and Inter Parfums (NASDAQ:IPAR) are both mid-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Natura &Co and Inter Parfums, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natura &Co	0	0	0	0	N/A
Inter Parfums	0	0	3	0	3.00

Inter Parfums has a consensus target price of $178.67, suggesting a potential upside of 50.00%. Given Inter Parfums’ higher possible upside, analysts plainly believe Inter Parfums is more favorable than Natura &Co.

Institutional and Insider Ownership

6.1% of Natura &Co shares are owned by institutional investors. Comparatively, 55.6% of Inter Parfums shares are owned by institutional investors. 0.1% of Natura &Co shares are owned by company insiders. Comparatively, 43.9% of Inter Parfums shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Natura &Co and Inter Parfums’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Natura &Co	11.13%	-3.74%	-1.78%
Inter Parfums	11.59%	17.62%	11.11%

Valuation and Earnings

This table compares Natura &Co and Inter Parfums’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natura &Co	$5.36 billion	0.87	$595.64 million	N/A	N/A
Inter Parfums	$1.32 billion	2.89	$152.65 million	$4.75	25.08

Natura &Co has higher revenue and earnings than Inter Parfums.

Dividends

Natura &Co pays an annual dividend of $0.04 per share and has a dividend yield of 0.6%. Inter Parfums pays an annual dividend of $3.00 per share and has a dividend yield of 2.5%. Inter Parfums pays out 63.2% of its earnings in the form of a dividend. Inter Parfums has raised its dividend for 3 consecutive years. Inter Parfums is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Natura &Co has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500. Comparatively, Inter Parfums has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Summary

Inter Parfums beats Natura &Co on 10 of the 14 factors compared between the two stocks.

About Natura &Co

Natura &Co Holding S.A. engages in the manufacturing, distribution, and sale of cosmetics, fragrances, and personal care products in Brazil, Asia, Europe, North America, South America, the Middle East, Africa, and Oceania. The company operates through Natura &Co Latam and Avon International segments. It markets its products under the Natura and Avon brand names through e-commerce, direct selling, business-to-business, franchises, physical stores, and retail markets. Natura &Co Holding S.A. was founded in 1969 and is headquartered in São Paulo, Brazil.

About Inter Parfums

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.