Contrasting Estee Lauder Companies (NYSE:EL) and Natural Health Trends (NASDAQ:NHTC)

Estee Lauder Companies (NYSE:EL) and Natural Health Trends (NASDAQ:NHTC) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Volatility & Risk

Estee Lauder Companies has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Natural Health Trends has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Dividends

Estee Lauder Companies pays an annual dividend of $1.40 per share and has a dividend yield of 1.6%. Natural Health Trends pays an annual dividend of $0.40 per share and has a dividend yield of 39.6%. Estee Lauder Companies pays out 285.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Natural Health Trends pays out -250.0% of its earnings in the form of a dividend. Natural Health Trends is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Estee Lauder Companies and Natural Health Trends”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Estee Lauder Companies	$15.05 billion	2.17	$182.00 million	$0.49	184.06
Natural Health Trends	$39.78 million	0.22	-$880,000.00	($0.16)	-6.31

Estee Lauder Companies has higher revenue and earnings than Natural Health Trends. Natural Health Trends is trading at a lower price-to-earnings ratio than Estee Lauder Companies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Estee Lauder Companies and Natural Health Trends’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Estee Lauder Companies	1.21%	23.52%	4.72%
Natural Health Trends	-4.51%	-8.00%	-4.58%

Institutional & Insider Ownership

55.1% of Estee Lauder Companies shares are held by institutional investors. Comparatively, 10.1% of Natural Health Trends shares are held by institutional investors. 13.1% of Estee Lauder Companies shares are held by company insiders. Comparatively, 12.9% of Natural Health Trends shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Estee Lauder Companies and Natural Health Trends, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Estee Lauder Companies	2	12	8	2	2.42
Natural Health Trends	1	0	0	0	1.00

Estee Lauder Companies currently has a consensus price target of $104.67, indicating a potential upside of 16.05%. Given Estee Lauder Companies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Estee Lauder Companies is more favorable than Natural Health Trends.

Summary

Estee Lauder Companies beats Natural Health Trends on 15 of the 17 factors compared between the two stocks.

About Estee Lauder Companies

The Estée Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, serums, cleansers, toners, body care, exfoliators, acne care and oil correctors, facial masks, and sun care products; and makeup products, such as lipsticks, lip glosses, mascaras, foundations, eyeshadows, and powders, as well as compacts, brushes, and other makeup tools. The company also provides fragrance products in various forms comprising eau de parfum sprays and colognes, as well as lotions, powders, creams, candles, and soaps; and hair care products, including shampoos, conditioners, styling products, treatment, finishing sprays, and hair color products, as well as sells ancillary products and services. It offers its products under the Estée Lauder, Clinique, Origins, M·A·C, Bobbi Brown Cosmetics, La Mer, Aveda, Jo Malone London, TOM FORD, Too Faced, Dr.Jart+, and The Ordinary brands. The company sells its products through department stores, specialty-multi retailers, upscale perfumeries and pharmacies, and salons and spas; freestanding stores; its own and authorized retailer websites; third-party online malls; stores in airports; and duty-free locations. The Estée Lauder Companies Inc. was founded in 1946 and is headquartered in New York, New York.

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.