Betterware de Mexico SAPI de C (NYSE:BWMX) and e.l.f. Beauty (NYSE:ELF) Financial Survey

e.l.f. Beauty (NYSE:ELF) and Betterware de Mexico SAPI de C (NYSE:BWMX) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for e.l.f. Beauty and Betterware de Mexico SAPI de C, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
e.l.f. Beauty	1	5	10	2	2.72
Betterware de Mexico SAPI de C	0	2	0	1	2.67

e.l.f. Beauty currently has a consensus target price of $112.06, suggesting a potential downside of 2.08%. Given e.l.f. Beauty’s stronger consensus rating and higher probable upside, research analysts clearly believe e.l.f. Beauty is more favorable than Betterware de Mexico SAPI de C.

Profitability

This table compares e.l.f. Beauty and Betterware de Mexico SAPI de C’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
e.l.f. Beauty	3.38%	14.07%	6.81%
Betterware de Mexico SAPI de C	8.08%	78.61%	11.76%

Volatility and Risk

e.l.f. Beauty has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Betterware de Mexico SAPI de C has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Valuation and Earnings

This table compares e.l.f. Beauty and Betterware de Mexico SAPI de C”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
e.l.f. Beauty	$1.64 billion	4.13	$26.32 million	$1.00	114.45
Betterware de Mexico SAPI de C	$16.31 billion	0.04	$55.37 million	$1.95	7.97

Betterware de Mexico SAPI de C has higher revenue and earnings than e.l.f. Beauty. Betterware de Mexico SAPI de C is trading at a lower price-to-earnings ratio than e.l.f. Beauty, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

92.4% of e.l.f. Beauty shares are held by institutional investors. Comparatively, 12.7% of Betterware de Mexico SAPI de C shares are held by institutional investors. 3.5% of e.l.f. Beauty shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

e.l.f. Beauty beats Betterware de Mexico SAPI de C on 9 of the 15 factors compared between the two stocks.

About e.l.f. Beauty

e.l.f. Beauty, Inc. is a holding company, which engages in the provision of inclusive, accessible, clean, vegan and cruelty free cosmetics and skin care products. The company focuses on the e-commerce, national retailers and international business channels. Its brands include elf, elf skin, WELL People and KEYS soulcare. The company was founded in 2004 and is headquartered in Oakland, CA.

About Betterware de Mexico SAPI de C

Betterware de Mexico, S.A.B. de C.V. operates as a direct-to-consumer company in Mexico. The company focuses on the home organization segment with a product portfolio, including home solutions, kitchen and food preservation, technology and mobility, and other categories. It serves approximately 3 million households through distributors and associates in approximately 800 communities throughout Mexico. The company was formerly known as Betterware de México, S.A.P.I. de C.V. Betterware de Mexico, S.A.B. de C.V. was founded in 1995 and is based in Zapopan, Mexico. Betterware de Mexico, S.A.B. de C.V. is a subsidiary of Campalier, S.A. de C.V.