Reviewing Natural Health Trends (NASDAQ:NHTC) and Olaplex (NASDAQ:OLPX)
by Sarita Garza · The Markets DailyOlaplex (NASDAQ:OLPX – Get Free Report) and Natural Health Trends (NASDAQ:NHTC – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.
Profitability
This table compares Olaplex and Natural Health Trends’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Olaplex | -1.18% | 1.31% | 0.70% |
| Natural Health Trends | -0.29% | -0.40% | -0.24% |
Institutional and Insider Ownership
87.4% of Olaplex shares are owned by institutional investors. Comparatively, 10.1% of Natural Health Trends shares are owned by institutional investors. 4.2% of Olaplex shares are owned by company insiders. Comparatively, 9.6% of Natural Health Trends shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Olaplex and Natural Health Trends”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Olaplex | $422.67 million | 2.01 | $19.52 million | N/A | N/A |
| Natural Health Trends | $42.96 million | 0.86 | $570,000.00 | ($0.01) | -321.00 |
Olaplex has higher revenue and earnings than Natural Health Trends.
Analyst Ratings
This is a breakdown of recent recommendations for Olaplex and Natural Health Trends, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Olaplex | 1 | 4 | 2 | 1 | 2.38 |
| Natural Health Trends | 1 | 0 | 0 | 0 | 1.00 |
Olaplex currently has a consensus target price of $1.85, indicating a potential upside of 45.67%. Given Olaplex’s stronger consensus rating and higher possible upside, equities analysts clearly believe Olaplex is more favorable than Natural Health Trends.
Risk and Volatility
Olaplex has a beta of 2.27, indicating that its share price is 127% more volatile than the S&P 500. Comparatively, Natural Health Trends has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.
Summary
Olaplex beats Natural Health Trends on 12 of the 14 factors compared between the two stocks.
About Olaplex
Olaplex Holdings, Inc. develops, manufactures, and sells hair care products in the United States and internationally. The company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair, as well as oil, moisture mask, and nourishing hair serum. It provides hair care products to professional hair salons, retailers, and everyday consumers. The company distributes its products through professional distributors in salons, directly to retailers for sale in their physical stores, e-commerce sites, and its website, Olaplex.com, as well as third party e-commerce platforms. The company was founded in 2014 and is based in Santa Barbara, California.
About Natural Health Trends
Natural Health Trends Corp., a direct-selling and e-commerce company, provides personal care, wellness, and lifestyle products under the NHT Global brand. The company offers wellness products, including liquid, encapsulated, tableted and powder dietary and nutritional supplements, vitamins, and minerals; and herbal products comprising herbal supplements. It also provides beauty products, such as age-defying and hydrating cleansers, creams, lotions, serums, and toners; and lifestyle products, which include weight management and energy enhancing supplements, as well as topical gels. In addition, the company offers home appliances; and daily products, such as oral care, hair care, and body care. It sells its products directly to consumers, as well as through an e-commerce retail platform in the United States, Canada, Cayman Islands, Mexico, Peru, Hong Kong, Taiwan, China, Singapore, Malaysia, Thailand, South Korea, Japan, India, Russia, Kazakhstan, and Europe. The company was formerly known as Florida Institute of Massage Therapy, Inc. and changed its name to Natural Health Trends Corp. in June 1993. Natural Health Trends Corp. was incorporated in 1988 and is headquartered in Tsim Sha Tsui, Hong Kong.