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

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for ODDITY Tech and Betterware de Mexico SAPI de C, as provided by MarketBeat.com.

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

ODDITY Tech presently has a consensus target price of $25.39, suggesting a potential upside of 102.93%. Given ODDITY Tech’s higher possible upside, analysts plainly believe ODDITY Tech is more favorable than Betterware de Mexico SAPI de C.

Profitability

This table compares ODDITY Tech 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
ODDITY Tech	6.97%	15.38%	4.99%
Betterware de Mexico SAPI de C	8.35%	77.89%	11.28%

Earnings and Valuation

This table compares ODDITY Tech 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
ODDITY Tech	$809.84 million	0.89	$110.75 million	$0.79	15.84
Betterware de Mexico SAPI de C	$744.00 million	0.79	$55.37 million	$1.83	8.65

ODDITY Tech has higher revenue and 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 & Insider Ownership

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

Volatility & Risk

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

Summary

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

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.

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.