Nautilus Group, Inc. (The) (NYSE: NLS) and Avon Products (NYSE:AVP) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitabiliy, risk, dividends and earnings.
Earnings & Valuation
This table compares Nautilus Group, Inc. (The) and Avon Products’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Nautilus Group, Inc. (The) | $398.36 million | 1.35 | $55.56 million | $0.95 | 18.47 |
| Avon Products | $5.74 billion | 0.28 | $437.20 million | ($0.01) | -359.64 |
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.
Profitability
This table compares Nautilus Group, Inc. (The) and Avon Products’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nautilus Group, Inc. (The) | 7.49% | 18.71% | 9.40% |
| Avon Products | 0.26% | -3.68% | 0.83% |
Volatility & Risk
Nautilus Group, Inc. (The) has a beta of 2.08, indicating that its share price is 108% more volatile than the S&P 500. Comparatively, Avon Products has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for Nautilus Group, Inc. (The) and Avon Products, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nautilus Group, Inc. (The) | 0 | 2 | 3 | 0 | 2.60 |
| Avon Products | 0 | 3 | 2 | 0 | 2.40 |
Nautilus Group, Inc. (The) currently has a consensus target price of $21.90, suggesting a potential upside of 24.79%. Avon Products has a consensus target price of $5.90, suggesting a potential upside of 63.89%. Given Avon Products’ higher probable upside, analysts plainly believe Avon Products is more favorable than Nautilus Group, Inc. (The).
Insider and Institutional Ownership
98.2% of Nautilus Group, Inc. (The) shares are owned by institutional investors. Comparatively, 87.1% of Avon Products shares are owned by institutional investors. 3.7% of Nautilus Group, Inc. (The) shares are owned by insiders. Comparatively, 1.3% of Avon Products shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Nautilus Group, Inc. (The) beats Avon Products on 10 of the 14 factors compared between the two stocks.
About Nautilus Group, Inc. (The)
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.
About Avon Products
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.
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