Contrasting LuxExperience B.V. (NYSE:LUXE) and Betterware de Mexico SAPI de C (NYSE:BWMX)

Betterware de Mexico SAPI de C (NYSE:BWMX) and LuxExperience B.V. (NYSE:LUXE) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Dividends

Betterware de Mexico SAPI de C pays an annual dividend of $1.03 per share and has a dividend yield of 7.9%. LuxExperience B.V. pays an annual dividend of $0.35 per share and has a dividend yield of 4.2%. Betterware de Mexico SAPI de C pays out 130.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LuxExperience B.V. pays out 7.2% of its earnings in the form of a dividend.

Risk & Volatility

Betterware de Mexico SAPI de C has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, LuxExperience B.V. has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Profitability

This table compares Betterware de Mexico SAPI de C and LuxExperience B.V.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Betterware de Mexico SAPI de C	4.08%	93.25%	10.08%
LuxExperience B.V.	45.47%	91.09%	54.24%

Analyst Ratings

This is a summary of recent recommendations and price targets for Betterware de Mexico SAPI de C and LuxExperience B.V., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Betterware de Mexico SAPI de C	0	2	0	0	2.00
LuxExperience B.V.	1	0	0	0	1.00

Valuation & Earnings

This table compares Betterware de Mexico SAPI de C and LuxExperience B.V.”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Betterware de Mexico SAPI de C	$773.60 million	0.63	$39.07 million	$0.79	16.46
LuxExperience B.V.	$1.26 billion	0.57	$601.34 million	$4.89	1.70

LuxExperience B.V. has higher revenue and earnings than Betterware de Mexico SAPI de C. LuxExperience B.V. 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.

Insider and Institutional Ownership

12.7% of Betterware de Mexico SAPI de C shares are held by institutional investors. Comparatively, 10.1% of LuxExperience B.V. shares are held by institutional investors. 1.9% of LuxExperience B.V. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

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.

About LuxExperience B.V.

MYT Netherlands Parent B.V., through its subsidiary, Mytheresa Group GmbH, operates a luxury e-commerce platform for fashion consumers in Germany, the United States, the rest of Europe, and internationally. The company sells clothes, bags, shoes, accessories, and fine jewelry through online and retail stores. It serves high-income luxury consumers. The company was founded in 1987 and is based in Munich, Germany.