Matthews International Corporation (NASDAQ: MATW) and USANA Health Sciences (NYSE:USNA) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitabiliy and analyst recommendations.
This table compares Matthews International Corporation and USANA Health Sciences’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Matthews International Corporation||5.17%||16.23%||5.40%|
|USANA Health Sciences||9.47%||30.12%||21.45%|
This is a breakdown of current recommendations for Matthews International Corporation and USANA Health Sciences, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Matthews International Corporation||0||0||3||0||3.00|
|USANA Health Sciences||0||0||1||0||3.00|
Matthews International Corporation currently has a consensus price target of $83.50, suggesting a potential upside of 31.19%. USANA Health Sciences has a consensus price target of $70.00, suggesting a potential upside of 20.59%. Given Matthews International Corporation’s higher probable upside, analysts plainly believe Matthews International Corporation is more favorable than USANA Health Sciences.
Institutional and Insider Ownership
79.1% of Matthews International Corporation shares are held by institutional investors. Comparatively, 43.9% of USANA Health Sciences shares are held by institutional investors. 3.9% of Matthews International Corporation shares are held by insiders. Comparatively, 53.2% of USANA Health Sciences shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Matthews International Corporation and USANA Health Sciences’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Matthews International Corporation||$1.50 billion||1.37||$190.96 million||$2.39||26.63|
|USANA Health Sciences||$1.02 billion||1.42||$146.58 million||$3.86||15.04|
Matthews International Corporation has higher revenue and earnings than USANA Health Sciences. USANA Health Sciences is trading at a lower price-to-earnings ratio than Matthews International Corporation, indicating that it is currently the more affordable of the two stocks.
Matthews International Corporation pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. USANA Health Sciences does not pay a dividend. Matthews International Corporation pays out 28.5% of its earnings in the form of a dividend. USANA Health Sciences has increased its dividend for 5 consecutive years.
Risk and Volatility
Matthews International Corporation has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, USANA Health Sciences has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.
About Matthews International Corporation
Matthews International Corporation is a provider of brand solutions, memorialization products and industrial technologies. The Company operates through three segments: SGK Brand Solutions, Memorialization and Industrial Technologies. The SGK Brand Solutions segment provides brand development, deployment and delivery (consisting of brand management, printing plates and cylinders, pre-media services and imaging services for consumer packaged goods and retail customers, merchandising display systems, and marketing and design services). The Memorialization segment manufactures and markets a line of memorialization products used primarily in cemeteries, funeral homes and crematories. The Industrial Technologies segment designs, manufactures and distributes a range of marking, coding and industrial automation solutions, order fulfillment systems and related consumables.
About USANA Health Sciences
USANA Health Sciences, Inc. develops and manufactures science-based nutritional and personal care products. The Company operates as a direct selling company in two geographic regions: Americas and Europe, and Asia Pacific, which includes three sub-regions: Southeast Asia Pacific, Greater China and North Asia. Its product lines include USANA Nutritionals Essentials, Optimizers, Foods, Sense-beautiful science and All Other. Its USANA Nutritionals Essentials product line includes vitamin and mineral supplements that provide a foundation of total body nutrition for every age group beginning with children of approximately one year. Its Optimizers product line consists of targeted supplements designed to meet individual health and nutritional needs. Its Sense-beautiful science product line includes science-based, personal care products that support skin and hair by providing topical nourishment, moisturization and protection.
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