Head-To-Head Survey: United-Guardian (NASDAQ:UG) & Natura &Co (NYSE:NTCOY)

United-Guardian (NASDAQ:UG) and Natura &Co (NYSE:NTCOY) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Dividends

United-Guardian pays an annual dividend of $0.50 per share and has a dividend yield of 6.2%. Natura &Co pays an annual dividend of $0.25 per share and has a dividend yield of 3.5%. United-Guardian pays out 89.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. United-Guardian has increased its dividend for 1 consecutive years. United-Guardian is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current recommendations and price targets for United-Guardian and Natura &Co, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United-Guardian	0	0	0	0	N/A
Natura &Co	0	0	0	0	N/A

Insider and Institutional Ownership

22.1% of United-Guardian shares are held by institutional investors. Comparatively, 6.1% of Natura &Co shares are held by institutional investors. 29.0% of United-Guardian shares are held by company insiders. Comparatively, 0.1% of Natura &Co shares are held 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.

Valuation & Earnings

This table compares United-Guardian and Natura &Co’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United-Guardian	$12.70 million	2.91	$2.57 million	$0.56	14.36
Natura &Co	$5.36 billion	0.91	$595.64 million	N/A	N/A

Natura &Co has higher revenue and earnings than United-Guardian.

Volatility & Risk

United-Guardian has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Natura &Co has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500.

Profitability

This table compares United-Guardian and Natura &Co’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United-Guardian	22.85%	24.97%	21.64%
Natura &Co	11.13%	-3.74%	-1.78%

Summary

United-Guardian beats Natura &Co on 8 of the 12 factors compared between the two stocks.

About United-Guardian

United-Guardian, Inc. manufactures and markets cosmetic ingredients, pharmaceuticals, medical lubricants, and proprietary specialty industrial products in the United States and internationally The company offers cosmetic ingredients, including LUBRAJEL, a line of water-based gel formulation for sensory enhancement, lubrication, and texture to personal care products; LUBRAJEL NATURAL for skin moisturizing; LUBRAJEL MARINE that develops natural products using naturally derived polymers; LUBRAJEL OlL NATURAL, which makes luxuriant textures without adding viscosity; LUBRAJEL TERRA, a multifunctional, moisturizing hydrogel products; LUBRASIL II SB, a formulation of LUBRAJEL; LUBRAJEL II XD; B-122, a powdered lubricant used in the manufacture of pressed powders, eyeliners, rouges, and industrial products; and ORCHID COMPLEX, an oil-soluble base for extract of fresh orchids used in fragrance products, such as perfumes and toiletries. Its medical lubricants comprise LUBRAJEL RR and RC, which are water-based lubricant gels for urinary catheters; LUBRAJEL MG to lubricate urinary catheters, pre-lubricated enema tips, and other medical devices; LUBRAJEL MGL, a medical lubricant with a lower viscosity medical lubricant; LUBRAJEL LC, LUBRAJEL BA, and LUBRAJEL FA, which are formulations for oral care; and LUBRAJEL FLUID to lubricate water-soluble products. The company's pharmaceutical products consist of RENACIDIN, a prescription drug to prevent and dissolve calcifications in urethral catheters and the urinary bladder; and CLORPACTIN WCS-90, an antimicrobial used in urology. Its industrial products include DESELEX, a sequestering and chelating agent used for manufacturing detergents; and THOROCLENS, a chlorine-based industrial cleanser. The company also conducts research and product development of cosmetic ingredients. The company was founded in 1942 and is based in Hauppauge, New York.

About Natura &Co

Natura &Co Holding S.A. engages in the development, manufacturing, distribution, and resale of cosmetics, fragrances, and personal care products in Asia, North America, South America, Europe, the Middle East, Africa, and Oceania. It operates through Natura &Co Latam, Avon International, The Body Shop, and Aesop segments. The company offers fragrances, makeup, body and facial care, sunscreen, soaps, deodorants, body oils, hair care, and gifts products. It also provides decorative, houseware, entertainment and leisure, and children's products, as well as jewelry, watches, clothing, footwear, and accessories. The company markets its products under the Natura, Avon, The Body Shop, and Aesop brand names through signature and department stores, 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.