Avon Products (AVP) and Nautilus Group, Inc. (The) (NLS) Critical Review

Avon Products (NYSE: AVP) and Nautilus Group, Inc. (The) (NYSE:NLS) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Risk & Volatility

Avon Products has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, Nautilus Group, Inc. (The) has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500.

Valuation & Earnings

This table compares Avon Products and Nautilus Group, Inc. (The)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Avon Products $5.71 billion 0.21 $385.50 million ($0.19) -14.58
Nautilus Group, Inc. (The) $396.86 million 1.33 $52.78 million $0.92 18.64

Avon Products has higher revenue and earnings than Nautilus Group, Inc. (The). Avon Products is trading at a lower price-to-earnings ratio than Nautilus Group, Inc. (The), indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

87.2% of Avon Products shares are owned by institutional investors. Comparatively, 98.1% of Nautilus Group, Inc. (The) shares are owned by institutional investors. 1.3% of Avon Products shares are owned by company insiders. Comparatively, 3.7% of Nautilus Group, Inc. (The) 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.

Profitability

This table compares Avon Products and Nautilus Group, Inc. (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avon Products -0.99% -3.68% -0.23%
Nautilus Group, Inc. (The) 7.25% 17.22% 8.93%

Analyst Recommendations

This is a summary of recent recommendations for Avon Products and Nautilus Group, Inc. (The), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avon Products 0 5 1 0 2.17
Nautilus Group, Inc. (The) 0 1 4 0 2.80

Avon Products currently has a consensus price target of $4.58, indicating a potential upside of 65.46%. Nautilus Group, Inc. (The) has a consensus price target of $22.30, indicating a potential upside of 30.03%. Given Avon Products’ higher probable upside, equities analysts clearly believe Avon Products is more favorable than Nautilus Group, Inc. (The).

Summary

Nautilus Group, Inc. (The) beats Avon Products on 10 of the 13 factors compared between the two stocks.

Avon Products Company Profile

Avon Products, Inc. is a manufacturer and marketer of beauty and related products. The Company’s segments include Europe, Middle East & Africa; South Latin America; North Latin America, and Asia Pacific. Its product categories are Beauty, and Fashion and Home. Beauty consists of skincare (which includes personal care), fragrance and color (cosmetics). Fashion and Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products. The Company’s products include Anew Ultimate Supreme Advanced Performance Creme, Anew Vitale Visible Perfection Blurring Treatment, Big & Multiplied Volume Mascara, Avon True Perfectly Matte Lipstick, Avon Life for Him and for Her Fragrances, Far Away Infinity Fragrance and Avon Nutra Effects body collection with Active Seed Complex. The Company primarily sells its products to the consumer through the direct-selling channel.

Nautilus Group, Inc. (The) Company Profile

Nautilus, Inc. is a consumer fitness products company. The Company operates through two segments: Direct and Retail. Its principal business activities include designing, developing, sourcing and marketing of cardio and strength fitness products and related accessories for consumer use, primarily in the United States and Canada, but also in international markets outside North America. The Direct business offers products directly to consumers through television advertising, catalogs and the Internet. In its Direct business, the Company markets and sells its products, principally Bowflex cardio and strength products, directly to consumers. The Retail business offers its products through a network of independent retail companies and specialty retailers with stores and Websites located in the United States and internationally. In its Retail business, the Company markets and sells a line of consumer fitness equipment under the Nautilus, Octane Fitness, Schwinn, Universal and Bowflex brands.

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