Natural Health Trends (NASDAQ:NHTC) and Coty (NYSE:COTY) Head to Head Review

Coty (NYSE:COTY) and Natural Health Trends (NASDAQ:NHTC) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Volatility & Risk

Coty has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Natural Health Trends has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Profitability

This table compares Coty and Natural Health Trends’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coty	-9.20%	4.59%	1.47%
Natural Health Trends	-4.51%	-8.00%	-4.58%

Institutional & Insider Ownership

42.4% of Coty shares are owned by institutional investors. Comparatively, 10.1% of Natural Health Trends shares are owned by institutional investors. 5.9% of Coty shares are owned by company insiders. Comparatively, 12.9% of Natural Health Trends shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Coty and Natural Health Trends”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coty	$5.89 billion	0.41	-$367.90 million	($0.62)	-4.41
Natural Health Trends	$39.78 million	0.38	-$880,000.00	($0.16)	-10.91

Natural Health Trends has lower revenue, but higher earnings than Coty. Natural Health Trends is trading at a lower price-to-earnings ratio than Coty, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Coty and Natural Health Trends, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coty	3	13	1	0	1.88
Natural Health Trends	1	0	0	0	1.00

Coty presently has a consensus target price of $3.70, indicating a potential upside of 35.41%. Given Coty’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Coty is more favorable than Natural Health Trends.

Summary

Coty beats Natural Health Trends on 10 of the 14 factors compared between the two stocks.

About Coty

Coty Inc., together with its subsidiaries, manufactures, markets, distributes, and sells beauty products worldwide. It operates through Prestige and Consumer Beauty segments. The company provides fragrance, color cosmetics, and skin and body care products. It offers Prestige segment products primarily through prestige retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops under the Burberry, Calvin Klein, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Kylie Jenner, Lancaster, Marc Jacobs, Miu Miu, Orveda, philosophy, SKKN BY KIM, and Tiffany & Co. brands. The company provides Consumer Beauty segment products primarily through hypermarkets, supermarkets, drug stores, pharmacies, mid-tier department stores, traditional food and drug retailers, and e-commerce retailers under the Adidas, Beckham, Biocolor, Bozzano, Bourjois, Bruno Banani, CoverGirl, Jovan, Max Factor, Mexx, Monange, Nautica, Paixao, Rimmel, Risque, and Sally Hansen brands. It also sells its products through third-party distributors. The company was founded in 1904 and is headquartered in New York, New York. Coty Inc. is a subsidiary of JAB Beauty B.V.

About Natural Health Trends

Natural Health Trends Corp., a direct-selling and e-commerce company, provides personal care, wellness, and lifestyle products under the NHT Global brand. The company offers wellness products, including liquid, encapsulated, tableted and powder dietary and nutritional supplements, vitamins, and minerals; and herbal products comprising herbal supplements. It also provides beauty products, such as age-defying and hydrating cleansers, creams, lotions, serums, and toners; and lifestyle products, which include weight management and energy enhancing supplements, as well as topical gels. In addition, the company offers home appliances; and daily products, such as oral care, hair care, and body care. It sells its products directly to consumers, as well as through an e-commerce retail platform in the United States, Canada, Cayman Islands, Mexico, Peru, Hong Kong, Taiwan, China, Singapore, Malaysia, Thailand, South Korea, Japan, India, Russia, Kazakhstan, and Europe. The company was formerly known as Florida Institute of Massage Therapy, Inc. and changed its name to Natural Health Trends Corp. in June 1993. Natural Health Trends Corp. was incorporated in 1988 and is headquartered in Tsim Sha Tsui, Hong Kong.