Comparing Interparfums (IPAR) and The Competition

Interparfums (NASDAQ:IPAR) is one of 55 publicly-traded companies in the “Personal Care Products” industry, but how does it weigh in compared to its competitors? We will compare Interparfums to similar companies based on the strength of its analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Dividends

Interparfums pays an annual dividend of $3.20 per share and has a dividend yield of 2.4%. Interparfums pays out 60.3% of its earnings in the form of a dividend. As a group, “Personal Care Products” companies pay a dividend yield of 3.7% and pay out 47.4% of their earnings in the form of a dividend. Interparfums has raised its dividend for 4 consecutive years. Interparfums lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Interparfums and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Interparfums	$1.49 billion	$168.39 million	25.64
Interparfums Competitors	$8.28 billion	$1.11 billion	9.23

Interparfums’ competitors have higher revenue and earnings than Interparfums. Interparfums is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations for Interparfums and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interparfums	1	5	2	0	2.12
Interparfums Competitors	898	2933	3658	228	2.42

Interparfums presently has a consensus price target of $125.29, indicating a potential downside of 7.99%. As a group, “Personal Care Products” companies have a potential upside of 1.63%. Given Interparfums’ competitors stronger consensus rating and higher probable upside, analysts clearly believe Interparfums has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

55.6% of Interparfums shares are held by institutional investors. Comparatively, 49.3% of shares of all “Personal Care Products” companies are held by institutional investors. 43.6% of Interparfums shares are held by insiders. Comparatively, 11.9% of shares of all “Personal Care Products” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Interparfums and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interparfums	11.33%	15.44%	11.05%
Interparfums Competitors	-5.63%	-66.11%	-0.44%

Volatility & Risk

Interparfums has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Interparfums’ competitors have a beta of 0.80, meaning that their average stock price is 20% less volatile than the S&P 500.

Summary

Interparfums competitors beat Interparfums on 8 of the 15 factors compared.

Interparfums Company Profile

Inter Parfums, Inc., together with its subsidiaries, manufactures, markets, and distributes a range of fragrances and fragrance related products in the United States and internationally. It operates in two segments, European Based Operations and United States Based Operations. The company offers its fragrance and cosmetic products under the Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lanvin, Moncler, Montblanc, Rochas, S.T. Dupont, Van Cleef & Arpels, Abercrombie & Fitch, Anna Sui, Donna Karan, DKNY, Emanual Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, Ungaro, and Roberto Cavalli brands, as well as French Connection, Intimate, and Dunhill, Lacoste names. It sells its products to department stores, perfumeries, specialty stores, duty free shops, and domestic and international wholesalers, and distributors, as well as through e-commerce. The company was formerly known as Jean Philippe Fragrances, Inc. and changed its name to Inter Parfums, Inc. in July 1999. Inter Parfums, Inc. was founded in 1982 and is headquartered in New York, New York.