Nautilus Group, Inc. (The) (NYSE: NLS) and Herbalife LTD. (NYSE:HLF) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Earnings & Valuation

This table compares Nautilus Group, Inc. (The) and Herbalife LTD.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nautilus Group, Inc. (The) $396.86 million 1.30 $52.78 million $0.92 18.21
Herbalife LTD. $4.42 billion 1.38 $727.70 million $4.76 14.21

Herbalife LTD. has higher revenue and earnings than Nautilus Group, Inc. (The). Herbalife LTD. is trading at a lower price-to-earnings ratio than Nautilus Group, Inc. (The), indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Nautilus Group, Inc. (The) has a beta of 2.15, indicating that its stock price is 115% more volatile than the S&P 500. Comparatively, Herbalife LTD. has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Nautilus Group, Inc. (The) and Herbalife LTD., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nautilus Group, Inc. (The) 0 0 6 0 3.00
Herbalife LTD. 0 2 2 0 2.50

Nautilus Group, Inc. (The) currently has a consensus price target of $22.67, indicating a potential upside of 35.32%. Herbalife LTD. has a consensus price target of $86.33, indicating a potential upside of 27.60%. Given Nautilus Group, Inc. (The)’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Nautilus Group, Inc. (The) is more favorable than Herbalife LTD..

Insider & Institutional Ownership

97.5% of Nautilus Group, Inc. (The) shares are held by institutional investors. 3.7% of Nautilus Group, Inc. (The) shares are held by company insiders. Comparatively, 5.0% of Herbalife LTD. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Nautilus Group, Inc. (The) and Herbalife LTD.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nautilus Group, Inc. (The) 7.25% 17.22% 8.93%
Herbalife LTD. 9.28% 216.82% 14.15%

Summary

Herbalife LTD. beats Nautilus Group, Inc. (The) on 8 of the 14 factors compared between the two stocks.

About Nautilus Group, Inc. (The)

Nautilus, Inc. is a consumer fitness products company. The Company operates through two segments: Direct and Retail. Its principal business activities include designing, developing, sourcing and marketing of cardio and strength fitness products and related accessories for consumer use, primarily in the United States and Canada, but also in international markets outside North America. The Direct business offers products directly to consumers through television advertising, catalogs and the Internet. In its Direct business, the Company markets and sells its products, principally Bowflex cardio and strength products, directly to consumers. The Retail business offers its products through a network of independent retail companies and specialty retailers with stores and Websites located in the United States and internationally. In its Retail business, the Company markets and sells a line of consumer fitness equipment under the Nautilus, Octane Fitness, Schwinn, Universal and Bowflex brands.

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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