Contrasting Unicharm (OTCMKTS:UNICY) and Nature’s Sunshine Products (NASDAQ:NATR)

Unicharm (OTCMKTS:UNICY) and Nature’s Sunshine Products (NASDAQ:NATR) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Volatility & Risk

Unicharm has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Nature’s Sunshine Products has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Profitability

This table compares Unicharm and Nature’s Sunshine Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Unicharm	6.65%	7.19%	5.28%
Nature’s Sunshine Products	3.68%	12.88%	8.17%

Insider and Institutional Ownership

79.4% of Nature’s Sunshine Products shares are owned by institutional investors. 3.1% of Nature’s Sunshine Products shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Unicharm pays an annual dividend of $0.04 per share and has a dividend yield of 1.2%. Nature’s Sunshine Products pays an annual dividend of $0.40 per share and has a dividend yield of 3.3%. Unicharm pays out 30.8% of its earnings in the form of a dividend. Nature’s Sunshine Products pays out 39.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a breakdown of current recommendations for Unicharm and Nature’s Sunshine Products, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unicharm	0	2	0	0	2.00
Nature’s Sunshine Products	0	1	2	0	2.67

Nature’s Sunshine Products has a consensus price target of $25.00, suggesting a potential upside of 103.85%. Given Nature’s Sunshine Products’ stronger consensus rating and higher probable upside, analysts clearly believe Nature’s Sunshine Products is more favorable than Unicharm.

Valuation & Earnings

This table compares Unicharm and Nature’s Sunshine Products”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unicharm	$6.32 billion	1.83	$436.93 million	$0.13	25.54
Nature’s Sunshine Products	$492.02 million	0.44	$19.52 million	$1.01	12.14

Unicharm has higher revenue and earnings than Nature’s Sunshine Products. Nature’s Sunshine Products is trading at a lower price-to-earnings ratio than Unicharm, indicating that it is currently the more affordable of the two stocks.

Summary

Nature’s Sunshine Products beats Unicharm on 10 of the 16 factors compared between the two stocks.

About Unicharm

Unicharm Corporation engages in the manufacturing and sale of wellness, feminine, baby and children, kirei, and pet care products in Japan and internationally. The company's baby and child care products, including disposable diapers and wipes under the Moony, MamyPoko, Oyasumiman, and Torepanman brands; feminine care products comprise napkins, tampons, panty liners, sanitary short, panty liners, and other feminine care products under the Sofy, Center-In, and Unicharm brand names; and wellness care products include napkin-type incontinence pads, pants-type diapers, tape-type diapers, pants-type specialized urine pads, and tape-type specialized urine pads under the Lifree and Charmnap brand. It also provides masks under the Unicharm brand; home care products, including cleaning sheets under the Wave brand name; cosmetic cotton and wet wipes under the Silcot brand; and paper towels under the Cook Up brand name. In addition, the company offers pet care products that include pet foods, excrement cleanup sheets, system toilets, and disposable diapers under the Grand Deli, Best Balance, Physicalife Dog, Silver Plate, Aiken Genki, Manner Wear, Deo Sheet, Silver Spoon, AllWell, Physicalife Cat, Deo Toilet, Deo Sand, Deo Clean, and Neko Genki brands; and deodorizing beads. Further, it is involved in the manufacture and sale of industrial materials related products, etc., as well as food-packaging materials. Unicharm Corporation was incorporated in 1941 and is headquartered in Tokyo, Japan.

About Nature’s Sunshine Products

Nature’s Sunshine Products, Inc., a natural health and wellness company, manufactures and sells nutritional and personal care products in Asia, Europe, North America, Latin America, and internationally. It offers general health products related to blood sugar support, bone health, cellular health, cognitive function, joint health, mood, sexual health, sleep, sports and energy, and vision. The company also provides immunity, cardiovascular, and digestive products; and personal care products, such as oils and lotions, aloe vera gels, herbal shampoos, herbal skin treatment, toothpaste, and skin cleansers, as well as weight management products. It offers its products under the Nature’s Sunshine and Synergy WorldWide brands through a sales force of independent consultants. Nature’s Sunshine Products, Inc. was founded in 1972 and is headquartered in Lehi, Utah.