L’Oreal (OTCMKTS:LRLCY) versus Synergy CHC (NASDAQ:SNYR) Critical Contrast

Synergy CHC (NASDAQ:SNYR) and L’Oreal (OTCMKTS:LRLCY) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Profitability

This table compares Synergy CHC and L’Oreal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synergy CHC	-60.02%	N/A	-30.30%
L’Oreal	N/A	N/A	N/A

Risk & Volatility

Synergy CHC has a beta of -0.14, meaning that its stock price is 114% less volatile than the S&P 500. Comparatively, L’Oreal has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Synergy CHC and L’Oreal, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synergy CHC	1	1	2	0	2.25
L’Oreal	1	4	7	1	2.62

Synergy CHC currently has a consensus price target of $6.25, indicating a potential upside of 6,168.81%. Given Synergy CHC’s higher probable upside, equities analysts clearly believe Synergy CHC is more favorable than L’Oreal.

Earnings & Valuation

This table compares Synergy CHC and L’Oreal”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synergy CHC	$30.38 million	0.05	-$12.34 million	($1.40)	-0.07
L’Oreal	$49.83 billion	4.69	$6.93 billion	N/A	N/A

L’Oreal has higher revenue and earnings than Synergy CHC.

Institutional & Insider Ownership

0.4% of L’Oreal shares are owned by institutional investors. 32.9% of Synergy CHC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

L’Oreal beats Synergy CHC on 10 of the 12 factors compared between the two stocks.

About Synergy CHC

Synergy CHC Corp. engages in the marketing and distribution of branded health and wellness products. The company was founded on December 29, 2010 and is headquartered in Westbrook, ME.

About L’Oreal

L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. The company operates through four divisions: Consumer Products, L'oréal Luxe, Professional Products, and Dermatological Beauty. It offers skincare, make-up, hair colourants, haircare, perfumes, and hygiene products. The company provides its products under the L'Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Stylenanda, Essie, Dark & Lovely, Mixa, Magic Mask, Niley, Lancôme, Yves Saint Laurent, Armani, Kiehl's Since 1851, Helena Rubinstein, Biotherm, Shu Uemura, IT Cosmetics, Ralph Lauren Fragrance, Urban Decay, Mugler, Valentino, Viktor&Rolf, Azzaro, Prada, Cacharel, Maison Margela Fragrance, Diesel, Yue Sai, Atelier Colonge, Carita, Takami, Aesop, L'Oréal Professionnel Paris, Kérastase, Redken, Matrix, Pureology, Pulp Riot, La Roche-Posay, Vichy, CeraVe, SkinCeuticals, and Skinbetter Science brands. It sells its products through distribution channels, such as hair salons, local stores, e-commerce, travel retail, mass market retail, department store perfumeries, pharmacies, drug stores, medi-spas, and free-standing stores. L'Oréal S.A. was founded in 1909 and is headquartered in Clichy, France.