Analyzing Nanophase Technologies (OTCMKTS:NANX) and Lifevantage (NASDAQ:LFVN)

Lifevantage (NASDAQ:LFVN) and Nanophase Technologies (OTCMKTS:NANX) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Lifevantage and Nanophase Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lifevantage	0	2	0	0	2.00
Nanophase Technologies	0	0	0	0	0.00

Lifevantage presently has a consensus price target of $5.50, suggesting a potential downside of 11.26%. Given Nanophase Technologies’ higher possible upside, analysts plainly believe Nanophase Technologies is more favorable than Lifevantage.

Profitability

This table compares Lifevantage and Nanophase Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lifevantage	2.78%	21.56%	11.62%
Nanophase Technologies	5.59%	31.49%	6.67%

Volatility & Risk

Lifevantage has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Nanophase Technologies has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Insider and Institutional Ownership

35.3% of Lifevantage shares are owned by institutional investors. Comparatively, 70.2% of Nanophase Technologies shares are owned by institutional investors. 22.0% of Lifevantage shares are owned by company insiders. Comparatively, 5.1% of Nanophase Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Lifevantage and Nanophase Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lifevantage	$182.59 million	0.43	$5.07 million	$0.40	15.50
Nanophase Technologies	$37.30 million	0.00	-$4.39 million	$0.05	N/A

Lifevantage has higher revenue and earnings than Nanophase Technologies. Nanophase Technologies is trading at a lower price-to-earnings ratio than Lifevantage, indicating that it is currently the more affordable of the two stocks.

About Lifevantage

LifeVantage Corporation engages in the identification, research, development, formulation, and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management, skin and hair care, bath and body, and targeted relief products. It offers Protandim, a dietary supplement; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids, and vitamin D3; LifeVantage ProBio, a dietary supplement to support gut health; PhysIQ, a weight management system; LifeVantage IC Bright, a supplement to support eye and brain health, reduce eye fatigue and strain, supports cognitive functions, and support normal sleep patterns; Petandim for Dogs, a supplement to combat oxidative stress in dogs; and Axio, a nootropic energy drink mix. The company also provides anti-aging skin care products, including liquid collagen, facial cleansers, perfecting lotions, eye serums, anti-aging creams, hand creams, beauty serum, as well as hair care products, such as invigorating shampoos, nourishing conditioners, and scalp serums under the LifeVantage TrueScience brand name. In addition, it offers bath and body, and targeted relief products, such as body lotion, body wash, body butter, deodorant, soothing balm, and body rub under the TrueScience brand name. It sells its products through its website and network of independent distributors in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore, and the Philippines. The company was founded in 2003 and is headquartered in Lehi, Utah.

About Nanophase Technologies

Nanophase Technologies Corporation, a science-driven company, develops, manufactures, and sells integrated family of nanomaterial technologies in the United States. It engages in engineered materials, formulation development, and commercial manufacturing. The company produces engineered nanomaterial products comprising antimony, bismuth, cerium, iron, and zinc oxide for use in a various markets, including surface finishing,exterior coatings, personal care, plastics, scratch resistant coatings, and textiles. It also provides skin care formulations with mineral-based UV protection under the under the Solésence brand; and advanced material products, including architectural coatings, industrial coatings, abrasion-resistant additives, plastics additives, medical diagnostics, and surface finishing technologies applications. The company was incorporated in 1989 and is headquartered in Romeoville, Illinois.