Analyzing Synergy CHC (NASDAQ:SNYR) and e.l.f. Beauty (NYSE:ELF)

e.l.f. Beauty (NYSE:ELF) and Synergy CHC (NASDAQ:SNYR) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Risk & Volatility

e.l.f. Beauty has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, Synergy CHC has a beta of -0.25, indicating that its share price is 125% less volatile than the S&P 500.

Earnings & Valuation

This table compares e.l.f. Beauty and Synergy CHC”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
e.l.f. Beauty	$1.64 billion	3.46	$26.32 million	$1.00	95.92
Synergy CHC	$30.38 million	0.05	-$12.34 million	($1.40)	-0.08

e.l.f. Beauty has higher revenue and earnings than Synergy CHC. Synergy CHC is trading at a lower price-to-earnings ratio than e.l.f. Beauty, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

92.4% of e.l.f. Beauty shares are held by institutional investors. 3.5% of e.l.f. Beauty shares are held by insiders. Comparatively, 32.9% of Synergy CHC shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for e.l.f. Beauty and Synergy CHC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
e.l.f. Beauty	1	5	10	2	2.72
Synergy CHC	1	1	2	0	2.25

e.l.f. Beauty currently has a consensus price target of $92.12, indicating a potential downside of 3.95%. Synergy CHC has a consensus price target of $6.25, indicating a potential upside of 5,687.04%. Given Synergy CHC’s higher possible upside, analysts clearly believe Synergy CHC is more favorable than e.l.f. Beauty.

Profitability

This table compares e.l.f. Beauty and Synergy CHC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
e.l.f. Beauty	3.38%	14.07%	6.81%
Synergy CHC	-60.02%	N/A	-30.30%

Summary

e.l.f. Beauty beats Synergy CHC on 13 of the 15 factors compared between the two stocks.

About e.l.f. Beauty

e.l.f. Beauty, Inc. is a holding company, which engages in the provision of inclusive, accessible, clean, vegan and cruelty free cosmetics and skin care products. The company focuses on the e-commerce, national retailers and international business channels. Its brands include elf, elf skin, WELL People and KEYS soulcare. The company was founded in 2004 and is headquartered in Oakland, CA.

About Synergy CHC

Synergy CHC Corp. engages in the marketing and distribution of branded health and wellness products. The company was founded on December 29, 2010 and is headquartered in Westbrook, ME.