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

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

Institutional & Insider Ownership

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Natural Health Trends and Coty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natural Health Trends	1	0	0	0	1.00
Coty	2	11	0	0	1.85

Coty has a consensus target price of $3.37, suggesting a potential upside of 24.16%. Given Coty’s stronger consensus rating and higher probable upside, analysts plainly believe Coty is more favorable than Natural Health Trends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Natural Health Trends	-4.51%	-8.00%	-4.58%
Coty	-10.42%	5.68%	1.82%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natural Health Trends	$39.78 million	0.38	-$880,000.00	($0.16)	-10.97
Coty	$5.81 billion	0.41	-$604.80 million	($0.70)	-3.88

Natural Health Trends has higher earnings, but lower revenue 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.

Volatility & Risk

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

Dividends

Natural Health Trends pays an annual dividend of $0.40 per share and has a dividend yield of 22.8%. Coty pays an annual dividend of $0.50 per share and has a dividend yield of 18.4%. Natural Health Trends pays out -250.0% of its earnings in the form of a dividend. Coty pays out -71.4% 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. Natural Health Trends is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Coty beats Natural Health Trends on 9 of the 15 factors compared between the two stocks.

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.

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.