Nu Skin Enterprises (NYSE: NUS) and AmerisourceBergen (NYSE:ABC) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.
Nu Skin Enterprises pays an annual dividend of $1.46 per share and has a dividend yield of 2.0%. AmerisourceBergen pays an annual dividend of $1.52 per share and has a dividend yield of 1.6%. Nu Skin Enterprises pays out 45.2% of its earnings in the form of a dividend. AmerisourceBergen pays out 25.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Nu Skin Enterprises has increased its dividend for 17 consecutive years and AmerisourceBergen has increased its dividend for 13 consecutive years. Nu Skin Enterprises is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings and recommmendations for Nu Skin Enterprises and AmerisourceBergen, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nu Skin Enterprises||2||2||2||0||2.00|
Nu Skin Enterprises currently has a consensus price target of $70.17, suggesting a potential downside of 2.41%. AmerisourceBergen has a consensus price target of $103.07, suggesting a potential upside of 9.77%. Given AmerisourceBergen’s stronger consensus rating and higher possible upside, analysts plainly believe AmerisourceBergen is more favorable than Nu Skin Enterprises.
Insider and Institutional Ownership
76.5% of Nu Skin Enterprises shares are held by institutional investors. Comparatively, 66.9% of AmerisourceBergen shares are held by institutional investors. 5.2% of Nu Skin Enterprises shares are held by company insiders. Comparatively, 27.3% of AmerisourceBergen shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Nu Skin Enterprises has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, AmerisourceBergen has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.
Valuation & Earnings
This table compares Nu Skin Enterprises and AmerisourceBergen’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nu Skin Enterprises||$2.28 billion||1.67||$129.43 million||$3.23||22.29|
|AmerisourceBergen||$153.14 billion||0.13||$364.48 million||$5.88||15.97|
AmerisourceBergen has higher revenue and earnings than Nu Skin Enterprises. AmerisourceBergen is trading at a lower price-to-earnings ratio than Nu Skin Enterprises, indicating that it is currently the more affordable of the two stocks.
This table compares Nu Skin Enterprises and AmerisourceBergen’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nu Skin Enterprises||5.68%||25.23%||11.54%|
AmerisourceBergen beats Nu Skin Enterprises on 9 of the 17 factors compared between the two stocks.
Nu Skin Enterprises Company Profile
Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements under the Nu Skin and Pharmanex category brands worldwide. It provides skin care systems and targeted treatment products, including ageLOC Me customized skin care systems, ageLOC Spa systems, and ageLOC LumiSpa skin treatment and cleansing devices; and Epoch products, as well as a range of other cosmetic, personal care, and hair care products. The company also offers ageLOC Youth nutritional supplements, ageLOC TR90 weight management and body shaping systems, and LifePak nutritional supplements, as well as other anti-aging nutritional solutions and weight management products. In addition, it is involved in the research and product development of skin care products and nutritional supplements. Further, the company operates walk-in centers and pick-up locations; and retail stores and service centers in Mainland China. The company sells its products directly, as well as through distributors and Website. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah.
AmerisourceBergen Company Profile
AmerisourceBergen Corporation sources and distributes pharmaceutical products in the United States and internationally. Its Pharmaceutical Distribution segment distributes brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, outsourced compounded sterile preparations, and related services to various healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and other alternate site pharmacies, and other customers. It also provides pharmacy management, staffing, and other consulting services; supply management software to retail and institutional healthcare providers; and packaging solutions to various institutional and retail healthcare providers. In addition, this segment provides pharmaceutical distribution and other services primarily to physicians who specialize in various disease states, primarily oncology, as well as to other healthcare providers, including hospitals and dialysis clinics; distributes plasma and other blood products, injectable pharmaceuticals, vaccines, and other specialty products; and offers third party logistics and outcomes research, and other services for biotechnology and other pharmaceutical manufacturers. The company's Other segment provides commercialization support services, including reimbursement support programs, outcomes research, contract field staffing, patient assistance and co-pay assistance programs, adherence programs, risk mitigation services, and other market access programs to pharmaceutical and biotechnology manufacturers; specialty transportation and logistics services for the biopharmaceutical industry; and animal health care products. It markets its products and services through independent sales forces and marketing organizations. AmerisourceBergen Corporation was founded in 1985 and is headquartered in Chesterbrook, Pennsylvania.
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