Critical Comparison: Kid Brands (OTCMKTS:KIDBQ) versus Natural Health Trends (NASDAQ:NHTC)

Natural Health Trends (NASDAQ:NHTC) and Kid Brands (OTCMKTS:KIDBQ) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Natural Health Trends and Kid Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natural Health Trends	1	0	0	0	1.00
Kid Brands	0	0	0	0	0.00

Given Kid Brands’ higher possible upside, analysts clearly believe Kid Brands is more favorable than Natural Health Trends.

Profitability

This table compares Natural Health Trends and Kid Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Natural Health Trends	-2.22%	-3.23%	-1.97%
Kid Brands	N/A	N/A	N/A

Insider & Institutional Ownership

10.1% of Natural Health Trends shares are held by institutional investors. 13.3% of Natural Health Trends shares are held by company insiders. Comparatively, 24.5% of Kid Brands shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Natural Health Trends and Kid Brands”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natural Health Trends	$39.78 million	0.67	-$880,000.00	($0.08)	-38.63
Kid Brands	N/A	N/A	N/A	N/A	N/A

Kid Brands has lower revenue, but higher earnings than Natural Health Trends.

Summary

Kid Brands beats Natural Health Trends on 5 of the 8 factors compared between the two stocks.

About Natural Health Trends

Natural Health Trends Corp., a direct-selling and e-commerce company, provides personal care, wellness, and lifestyle products under the NHT Global brand. The company offers wellness products, including liquid, encapsulated, tableted and powder dietary and nutritional supplements, vitamins, and minerals; and herbal products comprising herbal supplements. It also provides beauty products, such as age-defying and hydrating cleansers, creams, lotions, serums, and toners; and lifestyle products, which include weight management and energy enhancing supplements, as well as topical gels. In addition, the company offers home appliances; and daily products, such as oral care, hair care, and body care. It sells its products directly to consumers, as well as through an e-commerce retail platform in the United States, Canada, Cayman Islands, Mexico, Peru, Hong Kong, Taiwan, China, Singapore, Malaysia, Thailand, South Korea, Japan, India, Russia, Kazakhstan, and Europe. The company was formerly known as Florida Institute of Massage Therapy, Inc. and changed its name to Natural Health Trends Corp. in June 1993. Natural Health Trends Corp. was incorporated in 1988 and is headquartered in Tsim Sha Tsui, Hong Kong.

About Kid Brands

Kid Brands, Inc., together with its subsidiaries, designs, imports, markets, and distributes infant and juvenile consumer products. The company offers infant bedding and related nursery accessories and décor, such as blankets, rugs, mobiles, nightlights, hampers, lamps, and wall art, as well as nursery appliances, diaper bags, and spa/bath products art under the Kids Line, Carter’s, Disney, CoCaLo Baby, CoCaLo Couture, and CoCaLo Naturals brands. It also provides cribs, mattresses, and other nursery furniture under the BabiItalia, Europa Baby, Bonavita, Graco, and Serta brands; and developmental toys and feeding products, bath and baby care items, and baby gear with features that address the various stages of an infant’s early years under the Sassy, Carter’s, Disney, Garanimals, and Kokopax brands. In addition, the company markets a range of products under various licenses, including Carter’s, Disney, Graco, and Serta. Kid Brands, Inc. sells its products through its own direct sales force, as well as through independent representatives and distributors to retail customers in the United States and internationally, including mass merchandisers, baby superstores, specialty stores, department stores, and boutiques. The company was formerly known as Russ Berrie and Company, Inc. and changed its name to Kid Brands, Inc. in September 2009. Kid Brands, Inc. was founded in 1963 and is headquartered in Rutherford, New Jersey. On June 18, 2014, Kid Brands, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of New Jersey.