Matthews International Corporation (MATW) & Nu Skin Enterprises (NUS) Financial Review
Matthews International Corporation (NASDAQ: MATW) and Nu Skin Enterprises (NYSE:NUS) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.
Matthews International Corporation pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. Nu Skin Enterprises pays an annual dividend of $1.44 per share and has a dividend yield of 2.3%. Matthews International Corporation pays out 28.5% of its earnings in the form of a dividend. Nu Skin Enterprises pays out 48.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Matthews International Corporation has raised its dividend for 5 consecutive years and Nu Skin Enterprises has raised its dividend for 16 consecutive years. Nu Skin Enterprises is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
78.9% of Matthews International Corporation shares are held by institutional investors. Comparatively, 79.3% of Nu Skin Enterprises shares are held by institutional investors. 3.9% of Matthews International Corporation shares are held by insiders. Comparatively, 5.2% of Nu Skin Enterprises 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.
This table compares Matthews International Corporation and Nu Skin Enterprises’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Matthews International Corporation||5.17%||16.23%||5.40%|
|Nu Skin Enterprises||7.53%||24.14%||11.26%|
This is a summary of current ratings for Matthews International Corporation and Nu Skin Enterprises, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Matthews International Corporation||0||0||3||0||3.00|
|Nu Skin Enterprises||2||2||3||0||2.14|
Matthews International Corporation presently has a consensus target price of $83.50, suggesting a potential upside of 43.72%. Nu Skin Enterprises has a consensus target price of $61.86, suggesting a potential downside of 0.05%. Given Matthews International Corporation’s stronger consensus rating and higher possible upside, equities analysts plainly believe Matthews International Corporation is more favorable than Nu Skin Enterprises.
Volatility & Risk
Matthews International Corporation has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Nu Skin Enterprises has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.
Valuation & Earnings
This table compares Matthews International Corporation and Nu Skin Enterprises’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Matthews International Corporation||$1.50 billion||1.25||$190.96 million||$2.39||24.31|
|Nu Skin Enterprises||$2.18 billion||1.50||$326.95 million||$2.95||20.98|
Nu Skin Enterprises has higher revenue and earnings than Matthews International Corporation. Nu Skin Enterprises is trading at a lower price-to-earnings ratio than Matthews International Corporation, indicating that it is currently the more affordable of the two stocks.
Nu Skin Enterprises beats Matthews International Corporation on 13 of the 16 factors compared between the two stocks.
Matthews International Corporation Company Profile
Matthews International Corporation is a provider of brand solutions, memorialization products and industrial technologies. The Company operates through three segments: SGK Brand Solutions, Memorialization and Industrial Technologies. The SGK Brand Solutions segment provides brand development, deployment and delivery (consisting of brand management, printing plates and cylinders, pre-media services and imaging services for consumer packaged goods and retail customers, merchandising display systems, and marketing and design services). The Memorialization segment manufactures and markets a line of memorialization products used primarily in cemeteries, funeral homes and crematories. The Industrial Technologies segment designs, manufactures and distributes a range of marking, coding and industrial automation solutions, order fulfillment systems and related consumables.
Nu Skin Enterprises Company Profile
Nu Skin Enterprises, Inc. is a direct selling company that develops and distributes personal care products and nutritional supplements, and a range of other products and services. The Company offers anti-aging personal care products and nutritional supplements under its Nu Skin and Pharmanex brands. The Nu Skin brand offers a range of products, including ageLOC Me customized skin care system, ageLOC Spa systems and ageLOC Transformation anti-aging skin care system. The Pharmanex product line includes ageLOC Youth nutritional supplement, ageLOC TR90 weight management and body shaping system, and LifePak nutritional supplements. The Company has operations in various geographic regions, including Greater China, North Asia, Americas, South Asia/Pacific, and Europe, the Middle East and Africa (EMEA). It is focused on offering ageLOC Youth nutritional supplement and ageLOC Me personalized skin care system. The Company also offers household products and technology services.
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