Herbalife (NYSE:HLF – Get Free Report) and Beauty Health (NASDAQ:SKIN – Get Free Report) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
Valuation and Earnings
This table compares Herbalife and Beauty Health”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Herbalife | $5.04 billion | 0.25 | $228.30 million | $1.55 | 7.96 |
| Beauty Health | $300.80 million | 0.28 | -$9.52 million | ($0.17) | -3.89 |
Analyst Ratings
This is a breakdown of current recommendations for Herbalife and Beauty Health, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Herbalife | 0 | 4 | 3 | 0 | 2.43 |
| Beauty Health | 1 | 5 | 1 | 0 | 2.00 |
Herbalife currently has a consensus target price of $17.00, indicating a potential upside of 37.84%. Beauty Health has a consensus target price of $1.52, indicating a potential upside of 130.71%. Given Beauty Health’s higher probable upside, analysts plainly believe Beauty Health is more favorable than Herbalife.
Insider and Institutional Ownership
93.3% of Beauty Health shares are held by institutional investors. 5.1% of Herbalife shares are held by insiders. Comparatively, 40.3% of Beauty Health shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Herbalife has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Beauty Health has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.
Profitability
This table compares Herbalife and Beauty Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Herbalife | 3.16% | -43.90% | 7.89% |
| Beauty Health | -9.79% | -46.83% | -5.77% |
Summary
Herbalife beats Beauty Health on 9 of the 14 factors compared between the two stocks.
About Herbalife
Herbalife Ltd. provides health and wellness products in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China, and the Asia Pacific. It offers products in the areas of weight management; targeted nutrition; energy, sports, and fitness; outer nutrition; and literature and promotional items. The company also provides weight management products, including meal replacement products, protein shakes, drink mixes, weight loss supplements, healthy snacks, and metabolism boosting teas; targeted nutrition products, which comprise functional beverages, and dietary and nutritional supplements that contain herbs, vitamins, minerals, and other natural ingredients; outer nutrition products, such as facial skin, body, and hair care products; and energy, sports, and fitness products, including N-R-G tea and energy drink products. In addition, it offers literature, promotional, and other materials that comprise start-up kits, sales tools, and educational materials. The company sells its products through sales representatives, independent service providers, and company-operated retail platforms. Herbalife Ltd. was formerly known as Herbalife Nutrition Ltd. and changed its name to Herbalife Ltd. in April 2023. The company was founded in 1980 and is headquartered in Los Angeles, California.
About Beauty Health
The Beauty Health Company designs, develops, manufactures, markets, and sells aesthetic technologies and products worldwide. The company's flagship product includes HydraFacial that enhance the skin to cleanse, extract, and hydrate the skin with proprietary solutions and serums. Its products also comprise Syndeo, a Delivery System designs to connects providers to the consumer's preferences to create a more personalized experience; consumables, such as single-use tips, solutions, and serums used to provide a hydrafacial treatment; SkinStylus SteriLock Microsystem, a microneedling device used for the treatment of enhancing appearance of surgical or traumatic hypertrophic scars on the abdomen and facial acne scarring in Fitzpatrick skin types I, II, and III; and Keravive, a treatment for scalp health. The company was founded in 1997 and is headquartered in Long Beach, California.
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