Nu Skin Enterprises (NYSE:NUS) and Betterware de Mexico SAPI de C (NYSE:BWMX) Critical Review

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

Earnings and Valuation

This table compares Nu Skin Enterprises and Betterware de Mexico SAPI de C”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nu Skin Enterprises	$1.38 billion	0.17	$160.20 million	($4.47)	-1.06
Betterware de Mexico SAPI de C	$744.00 million	0.81	$55.37 million	$1.83	8.77

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

Dividends

Nu Skin Enterprises pays an annual dividend of $0.24 per share and has a dividend yield of 5.0%. Betterware de Mexico SAPI de C pays an annual dividend of $1.30 per share and has a dividend yield of 8.1%. Nu Skin Enterprises pays out -5.4% 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.

Profitability

This table compares Nu Skin Enterprises 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
Nu Skin Enterprises	-15.73%	6.58%	3.63%
Betterware de Mexico SAPI de C	8.35%	77.89%	11.28%

Volatility and Risk

Nu Skin Enterprises has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Betterware de Mexico SAPI de C has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Nu Skin Enterprises and Betterware de Mexico SAPI de C, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nu Skin Enterprises	2	0	0	0	1.00
Betterware de Mexico SAPI de C	1	1	0	1	2.33

Institutional and Insider Ownership

82.8% of Nu Skin Enterprises shares are owned by institutional investors. Comparatively, 12.7% of Betterware de Mexico SAPI de C shares are owned by institutional investors. 2.8% of Nu Skin Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Betterware de Mexico SAPI de C beats Nu Skin Enterprises on 10 of the 15 factors compared between the two stocks.

About Nu Skin Enterprises

Nu Skin Enterprises, Inc., together with its subsidiaries, engages in the development and distribution of various beauty and wellness products worldwide. It offers skin care devices, cosmetics, and other personal care products, including ageLOC LumiSpa and ageLOC LumiSpa iO; and nutricentials skin care products. The company also provides wellness products, such as LifePak nutritional supplements, ageLOC TR90 weight management system, and Beauty Focus Collagen+. In addition, it is involved in the research and product development of skin care products and nutritional supplements. The company sells its products under the Nu Skin, Pharmanex, and ageLOC brands through retail stores, website, digital platforms, and independent direct sellers and marketers, as well as a service center. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, 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.