Critical Review: Betterware de Mexico SAPI de C (NYSE:BWMX) and ODDITY Tech (NASDAQ:ODD)

Betterware de Mexico SAPI de C (NYSE:BWMX) and ODDITY Tech (NASDAQ:ODD) are both small-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Profitability

This table compares Betterware de Mexico SAPI de C and ODDITY Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Betterware de Mexico SAPI de C	8.35%	77.89%	11.28%
ODDITY Tech	6.97%	15.38%	4.99%

Analyst Ratings

This is a summary of current ratings for Betterware de Mexico SAPI de C and ODDITY Tech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Betterware de Mexico SAPI de C	1	1	0	1	2.33
ODDITY Tech	4	9	0	0	1.69

ODDITY Tech has a consensus price target of $25.39, indicating a potential upside of 78.78%. Given ODDITY Tech’s higher probable upside, analysts plainly believe ODDITY Tech is more favorable than Betterware de Mexico SAPI de C.

Earnings & Valuation

This table compares Betterware de Mexico SAPI de C and ODDITY Tech”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Betterware de Mexico SAPI de C	$14.85 billion	0.04	$55.37 million	$1.83	8.84
ODDITY Tech	$809.84 million	1.01	$110.75 million	$0.79	17.97

ODDITY Tech has lower revenue, but higher earnings than Betterware de Mexico SAPI de C. Betterware de Mexico SAPI de C is trading at a lower price-to-earnings ratio than ODDITY Tech, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

12.7% of Betterware de Mexico SAPI de C shares are owned by institutional investors. Comparatively, 35.9% of ODDITY Tech shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Betterware de Mexico SAPI de C has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, ODDITY Tech has a beta of 2.38, suggesting that its stock price is 138% more volatile than the S&P 500.

Summary

Betterware de Mexico SAPI de C beats ODDITY Tech on 7 of the 13 factors compared between the two stocks.

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.

About ODDITY Tech

Oddity Tech Ltd. operates as a consumer tech company that builds digital-first brands for the beauty and wellness industries in the United States and internationally. It serves consumers worldwide through its AI-driven online platform, which uses data science, machine learning, and computer vision capabilities to identify consumer needs, and develop solutions in the form of beauty and wellness products. The company sells beauty, hair, and skin products under the IL MAKIAGE and SpoiledChild brands. In addition, it operates ODDITY LABS, a biotechnology center, which develops various ingredients, including novel molecules, probiotics, and peptides for beauty and wellness products. Oddity Tech Ltd. was incorporated in 2013 and is headquartered in Tel Aviv, Israel.