Head to Head Analysis: Betterware de Mexico SAPI de C (BWMX) and Its Competitors

Betterware de Mexico SAPI de C (NYSE:BWMX) is one of 55 public companies in the “Personal Care Products” industry, but how does it weigh in compared to its peers? We will compare Betterware de Mexico SAPI de C to similar businesses based on the strength of its dividends, institutional ownership, risk, profitability, valuation, earnings and analyst recommendations.

Insider & Institutional Ownership

12.7% of Betterware de Mexico SAPI de C shares are held by institutional investors. Comparatively, 49.0% of shares of all “Personal Care Products” companies are held by institutional investors. 12.5% of shares of all “Personal Care Products” companies are held by company 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.

Volatility & Risk

Betterware de Mexico SAPI de C has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Betterware de Mexico SAPI de C’s peers have a beta of 0.79, meaning that their average share price is 21% less volatile than the S&P 500.

Dividends

Betterware de Mexico SAPI de C pays an annual dividend of $1.30 per share and has a dividend yield of 8.1%. Betterware de Mexico SAPI de C pays out 71.0% of its earnings in the form of a dividend. As a group, “Personal Care Products” companies pay a dividend yield of 4.2% and pay out 50.7% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations for Betterware de Mexico SAPI de C and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Betterware de Mexico SAPI de C	1	1	0	1	2.33
Betterware de Mexico SAPI de C Competitors	835	2796	3568	212	2.43

As a group, “Personal Care Products” companies have a potential upside of 4.47%. Given Betterware de Mexico SAPI de C’s peers stronger consensus rating and higher probable upside, analysts clearly believe Betterware de Mexico SAPI de C has less favorable growth aspects than its peers.

Profitability

This table compares Betterware de Mexico SAPI de C and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Betterware de Mexico SAPI de C	8.35%	77.89%	11.28%
Betterware de Mexico SAPI de C Competitors	-6.19%	-113.37%	-0.20%

Earnings and Valuation

This table compares Betterware de Mexico SAPI de C and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Betterware de Mexico SAPI de C	$744.00 million	$55.37 million	8.82
Betterware de Mexico SAPI de C Competitors	$7.89 billion	$1.08 billion	2.44

Betterware de Mexico SAPI de C’s peers have higher revenue and earnings than Betterware de Mexico SAPI de C. Betterware de Mexico SAPI de C is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Betterware de Mexico SAPI de C peers beat Betterware de Mexico SAPI de C on 8 of the 15 factors compared.

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.