Financial Survey: Nature’s Sunshine Products (NASDAQ:NATR) vs. Procter & Gamble (NYSE:PG)

Procter & Gamble (NYSE:PG) and Nature’s Sunshine Products (NASDAQ:NATR) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Procter & Gamble and Nature’s Sunshine Products”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procter & Gamble	$87.03 billion	3.93	$16.05 billion	$6.62	22.25
Nature’s Sunshine Products	$480.14 million	0.48	$19.52 million	$1.01	13.02

Procter & Gamble has higher revenue and earnings than Nature’s Sunshine Products. Nature’s Sunshine Products is trading at a lower price-to-earnings ratio than Procter & Gamble, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Procter & Gamble has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Nature’s Sunshine Products has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Institutional and Insider Ownership

65.8% of Procter & Gamble shares are held by institutional investors. Comparatively, 79.4% of Nature’s Sunshine Products shares are held by institutional investors. 0.2% of Procter & Gamble shares are held by company insiders. Comparatively, 3.1% of Nature’s Sunshine Products shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Procter & Gamble and Nature’s Sunshine Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Procter & Gamble	18.44%	31.36%	13.09%
Nature’s Sunshine Products	3.68%	12.88%	8.17%

Analyst Ratings

This is a breakdown of current ratings and price targets for Procter & Gamble and Nature’s Sunshine Products, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procter & Gamble	0	10	13	0	2.57
Nature’s Sunshine Products	0	1	2	0	2.67

Procter & Gamble presently has a consensus target price of $161.55, indicating a potential upside of 9.69%. Nature’s Sunshine Products has a consensus target price of $30.50, indicating a potential upside of 131.87%. Given Nature’s Sunshine Products’ stronger consensus rating and higher probable upside, analysts plainly believe Nature’s Sunshine Products is more favorable than Procter & Gamble.

Summary

Procter & Gamble beats Nature’s Sunshine Products on 9 of the 14 factors compared between the two stocks.

About Procter & Gamble

Procter & Gamble Co. engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances. The Health Care segment includes oral care products like toothbrushes, toothpaste, and personal health care such as gastrointestinal, rapid diagnostics, respiratory, and vitamins, minerals, and supplements. The Fabric and Home care segment consists of fabric enhancers, laundry additives and detergents, and air, dish, and surface care. The Baby, Feminine and Family Care segment sells baby wipes, diapers, and pants, adult incontinence, feminine care, paper towels, tissues, and toilet paper. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, OH.

About Nature’s Sunshine Products

Nature’s Sunshine Products, Inc., a natural health and wellness company, manufactures and sells nutritional and personal care products in Asia, Europe, North America, Latin America, and internationally. It offers general health products related to blood sugar support, bone health, cellular health, cognitive function, joint health, mood, sexual health, sleep, sports and energy, and vision. The company also provides immunity, cardiovascular, and digestive products; and personal care products, such as oils and lotions, aloe vera gels, herbal shampoos, herbal skin treatment, toothpaste, and skin cleansers, as well as weight management products. It offers its products under the Nature’s Sunshine and Synergy WorldWide brands through a sales force of independent consultants. Nature’s Sunshine Products, Inc. was founded in 1972 and is headquartered in Lehi, Utah.