Natural Alternatives International (NASDAQ:NAII) and True Drinks (OTCMKTS:TRUU) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for Natural Alternatives International and True Drinks, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natural Alternatives International 0 0 0 0 N/A
True Drinks 0 0 0 0 N/A

Institutional and Insider Ownership

33.6% of Natural Alternatives International shares are held by institutional investors. 28.0% of Natural Alternatives International shares are held by insiders. Comparatively, 18.2% of True Drinks shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Natural Alternatives International has a beta of -0.13, indicating that its stock price is 113% less volatile than the S&P 500. Comparatively, True Drinks has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Profitability

This table compares Natural Alternatives International and True Drinks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natural Alternatives International 3.81% 12.85% 9.62%
True Drinks N/A N/A -306.72%

Earnings & Valuation

This table compares Natural Alternatives International and True Drinks’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Natural Alternatives International $132.44 million 0.54 $5.05 million N/A N/A
True Drinks $3.82 million 0.28 -$12.44 million N/A N/A

Natural Alternatives International has higher revenue and earnings than True Drinks.

Summary

Natural Alternatives International beats True Drinks on 8 of the 9 factors compared between the two stocks.

About Natural Alternatives International

Natural Alternatives International, Inc. engages in formulating, manufacturing, and marketing nutritional supplements in the United States and internationally. It operates through two segments, Private-Label Contract Manufacturing, and Patent and Trademark Licensing. The company offers private-label contract manufacturing services to companies that market and distribute vitamins, minerals, herbal, and other nutritional supplements, as well as other health care products. It also provides strategic partnering services, such as customized product formulation, clinical studies, manufacturing, marketing support, international regulatory and label law compliance, international product registration, packaging in multiple formats and labeling design, scientific research, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, packaging and delivery system design, and regulatory review. In addition, the company sells beta-alanine ingredient under the CarnoSyn and SR CarnoSyn names. It manufactures products in various forms, including capsules, tablets, chewable wafers, and powders. The company's private-label contract manufacturing customers include companies that market nutritional supplements through direct sales marketing channels, direct to consumer e-commerce channels, and retail stores. Natural Alternatives International, Inc. was founded in 1980 and is headquartered in Carlsbad, California.

About True Drinks

True Drinks Holdings, Inc. develops, markets, sells, and distributes naturally flavored water in the United States. The company offers AquaBall Naturally Flavored Water, a zero-sugar, zero-calorie, preservative-free, vitamin-enhanced, and naturally flavored water drink. It also markets and distributes Bazi All Natural Energy, a liquid nutritional supplement drink. True Drinks Holdings, Inc. distributes its products through various retail channels, such as grocery and convenience stores, mass merchandisers, and drug stores, as well as through its e-commerce platform. The company was formerly known as True Drinks, Inc. and changed its name to True Drinks Holdings, Inc. in October 2012. True Drinks Holdings, Inc. was founded in 2008 and is headquartered in Irvine, California.

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