Herbalife LTD. (NYSE: HLF) is one of 32 publicly-traded companies in the “Personal Products” industry, but how does it compare to its rivals? We will compare Herbalife LTD. to related companies based on the strength of its profitability, earnings, analyst recommendations, valuation, dividends, risk and institutional ownership.

Risk and Volatility

Herbalife LTD. has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Herbalife LTD.’s rivals have a beta of 1.09, meaning that their average share price is 9% more volatile than the S&P 500.

Institutional and Insider Ownership

57.6% of shares of all “Personal Products” companies are owned by institutional investors. 5.0% of Herbalife LTD. shares are owned by insiders. Comparatively, 15.4% of shares of all “Personal Products” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Herbalife LTD. and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Herbalife LTD. $4.42 billion $727.70 million 14.49
Herbalife LTD. Competitors $14.52 billion $2.92 billion 14.09

Herbalife LTD.’s rivals have higher revenue and earnings than Herbalife LTD.. Herbalife LTD. is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Herbalife LTD. and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Herbalife LTD. 9.28% 216.82% 14.15%
Herbalife LTD. Competitors 6.15% 158.39% 7.91%

Analyst Ratings

This is a summary of recent ratings for Herbalife LTD. and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Herbalife LTD. 0 2 2 0 2.50
Herbalife LTD. Competitors 364 1094 1239 28 2.34

Herbalife LTD. presently has a consensus target price of $86.33, suggesting a potential upside of 25.18%. As a group, “Personal Products” companies have a potential downside of 1.16%. Given Herbalife LTD.’s stronger consensus rating and higher probable upside, analysts clearly believe Herbalife LTD. is more favorable than its rivals.

Summary

Herbalife LTD. beats its rivals on 8 of the 13 factors compared.

About Herbalife LTD.

Herbalife Ltd. is a global nutrition company. The Company develops and sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, as well as personal care products. Its operating segments are based on geographical operations in six regions: North America; Mexico; South and Central America; Europe, the Middle East, and Africa (EMEA); Asia Pacific, and China. The Company categorizes its products into five groups: weight management, targeted nutrition, energy, sports and fitness, outer nutrition, and literature, promotional and other. As of December 31, 2016, it marketed and sold approximately 140 products encompassing over 4,700 stock keeping units (SKUs) globally. Its product categories include meal replacement; protein shakes; drink mixes; dietary and nutritional supplements containing herbs, vitamins, minerals and other natural ingredients; facial skin care; body care; hair care products; sales tools, and educational materials.

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