Analyzing Inter Parfums (IPAR) and Revlon (REV)

Inter Parfums (NASDAQ: IPAR) and Revlon (NYSE:REV) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Dividends

Inter Parfums pays an annual dividend of $0.84 per share and has a dividend yield of 1.7%. Revlon does not pay a dividend. Inter Parfums pays out 63.2% of its earnings in the form of a dividend.



Insider and Institutional Ownership

55.1% of Inter Parfums shares are owned by institutional investors. Comparatively, 14.4% of Revlon shares are owned by institutional investors. 45.4% of Inter Parfums shares are owned by company insiders. Comparatively, 78.0% of Revlon shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Inter Parfums and Revlon, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inter Parfums 0 3 2 0 2.40
Revlon 0 1 0 0 2.00

Inter Parfums currently has a consensus price target of $47.60, indicating a potential downside of 1.55%. Revlon has a consensus price target of $20.00, indicating a potential downside of 6.98%. Given Inter Parfums’ stronger consensus rating and higher possible upside, analysts clearly believe Inter Parfums is more favorable than Revlon.

Profitability

This table compares Inter Parfums and Revlon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inter Parfums 7.03% 7.68% 5.58%
Revlon -6.80% N/A -3.32%

Volatility & Risk

Inter Parfums has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500. Comparatively, Revlon has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Valuation & Earnings

This table compares Inter Parfums and Revlon’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inter Parfums $591.25 million 2.56 $41.59 million $1.33 36.35
Revlon $2.69 billion 0.43 -$183.20 million ($1.93) -11.14

Inter Parfums has higher earnings, but lower revenue than Revlon. Revlon is trading at a lower price-to-earnings ratio than Inter Parfums, indicating that it is currently the more affordable of the two stocks.

Summary

Inter Parfums beats Revlon on 12 of the 15 factors compared between the two stocks.

Inter Parfums Company Profile

Inter Parfums, Inc. operates in the fragrance business. The Company manufactures, markets and distributes an array of fragrance and fragrance related products. It operates through two segments: European based operations and United States based operations. The European Operations segment produces and distributes its fragrance products under license agreements with brand owners. It has a portfolio of prestige brands, which include Balmain, Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Lanvin, Paul Smith, S.T. Dupont, Repetto, Rochas, and Van Cleef & Arpels. Its prestige brand fragrance products are also marketed through its United States operations. These fragrance products are sold under various names, which include Abercrombie & Fitch, Agent Provocateur, Anna Sui, bebe, Dunhill, French Connection, Oscar de la Rent and Shanghai Tang brands. The Company sells its products to department stores, perfumeries, specialty stores, and domestic and international wholesalers and distributors.

Revlon Company Profile

Revlon, Inc. manufactures, markets and sells around the world a range of beauty and personal care products, including color cosmetics, hair color, hair care and hair treatments, as well as beauty tools, men’s grooming products, anti-perspirant deodorants, fragrances, skincare and other beauty care products. The Company operates through four segments: Consumer, which includes cosmetics, hair color and hair care, beauty tools, anti-perspirant deodorants, fragrances and skincare products; Professional, which includes a line of products sold to hair and nail salons, and professional salon distributors, including hair color, shampoos, conditioners, styling products, nail polishes and nail enhancements; Elizabeth Arden, which include Elizabeth Arden, which produces skin care, color cosmetics and fragrances under the Elizabeth Arden brand and Other, which includes the distribution of prestige, designer and celebrity fragrances, cosmetics and skincare products.

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