Analyzing Lifevantage (NASDAQ:LFVN) and Betterware de Mexico SAPI de C (NYSE:BWMX)

Lifevantage (NASDAQ:LFVN) and Betterware de Mexico SAPI de C (NYSE:BWMX) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Valuation & Earnings

This table compares Lifevantage and Betterware de Mexico SAPI de C”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lifevantage	$228.53 million	0.35	$9.81 million	$0.45	14.16
Betterware de Mexico SAPI de C	$744.00 million	0.81	$55.37 million	$1.83	8.83

Betterware de Mexico SAPI de C has higher revenue and earnings than Lifevantage. Betterware de Mexico SAPI de C is trading at a lower price-to-earnings ratio than Lifevantage, indicating that it is currently the more affordable of the two stocks.

Dividends

Lifevantage pays an annual dividend of $0.20 per share and has a dividend yield of 3.1%. Betterware de Mexico SAPI de C pays an annual dividend of $1.30 per share and has a dividend yield of 8.0%. Lifevantage pays out 44.4% of its earnings in the form of a dividend. Betterware de Mexico SAPI de C pays out 71.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lifevantage has increased its dividend for 3 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations for Lifevantage and Betterware de Mexico SAPI de C, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lifevantage	0	2	0	0	2.00
Betterware de Mexico SAPI de C	1	1	0	1	2.33

Lifevantage currently has a consensus price target of $5.00, indicating a potential downside of 21.51%. Given Lifevantage’s higher possible upside, equities analysts clearly believe Lifevantage is more favorable than Betterware de Mexico SAPI de C.

Volatility and Risk

Lifevantage has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Betterware de Mexico SAPI de C has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Institutional & Insider Ownership

35.3% of Lifevantage shares are owned by institutional investors. Comparatively, 12.7% of Betterware de Mexico SAPI de C shares are owned by institutional investors. 22.0% of Lifevantage shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Lifevantage and Betterware de Mexico SAPI de C’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lifevantage	2.94%	23.89%	12.47%
Betterware de Mexico SAPI de C	8.35%	77.89%	11.28%

Summary

Betterware de Mexico SAPI de C beats Lifevantage on 10 of the 17 factors compared between the two stocks.

About Lifevantage

LifeVantage Corporation engages in the identification, research, development, formulation, and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management, skin and hair care, bath and body, and targeted relief products. It offers Protandim, a dietary supplement; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids, and vitamin D3; LifeVantage ProBio, a dietary supplement to support gut health; PhysIQ, a weight management system; LifeVantage IC Bright, a supplement to support eye and brain health, reduce eye fatigue and strain, supports cognitive functions, and support normal sleep patterns; Petandim for Dogs, a supplement to combat oxidative stress in dogs; and Axio, a nootropic energy drink mix. The company also provides anti-aging skin care products, including liquid collagen, facial cleansers, perfecting lotions, eye serums, anti-aging creams, hand creams, beauty serum, as well as hair care products, such as invigorating shampoos, nourishing conditioners, and scalp serums under the LifeVantage TrueScience brand name. In addition, it offers bath and body, and targeted relief products, such as body lotion, body wash, body butter, deodorant, soothing balm, and body rub under the TrueScience brand name. It sells its products through its website and network of independent distributors in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore, and the Philippines. The company was founded in 2003 and is headquartered in Lehi, Utah.

About Betterware de Mexico SAPI de C

Betterware de Mexico, S.A.B. de C.V. operates as a direct-to-consumer company in Mexico. The company focuses on the home organization segment with a product portfolio, including home solutions, kitchen and food preservation, technology and mobility, and other categories. It serves approximately 3 million households through distributors and associates in approximately 800 communities throughout Mexico. The company was formerly known as Betterware de México, S.A.P.I. de C.V. Betterware de Mexico, S.A.B. de C.V. was founded in 1995 and is based in Zapopan, Mexico. Betterware de Mexico, S.A.B. de C.V. is a subsidiary of Campalier, S.A. de C.V.