Head-To-Head Review: Edgewell Personal Care (EPC) and Inter Parfums (IPAR)

Edgewell Personal Care (NYSE: EPC) and Inter Parfums (NASDAQ:IPAR) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Profitability

This table compares Edgewell Personal Care and Inter Parfums’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Edgewell Personal Care -0.95% 11.51% 4.77%
Inter Parfums 7.12% 7.80% 5.73%

Insider and Institutional Ownership

95.0% of Edgewell Personal Care shares are held by institutional investors. Comparatively, 55.3% of Inter Parfums shares are held by institutional investors. 1.0% of Edgewell Personal Care shares are held by insiders. Comparatively, 45.4% of Inter Parfums shares are held 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.

Dividends

Inter Parfums pays an annual dividend of $0.84 per share and has a dividend yield of 1.6%. Edgewell Personal Care does not pay a dividend. Inter Parfums pays out 63.2% of its earnings in the form of a dividend.

Volatility and Risk

Edgewell Personal Care has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Inter Parfums has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Edgewell Personal Care and Inter Parfums, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Edgewell Personal Care 2 6 3 0 2.09
Inter Parfums 0 2 4 0 2.67

Edgewell Personal Care presently has a consensus target price of $58.80, indicating a potential upside of 21.34%. Inter Parfums has a consensus target price of $52.25, indicating a potential downside of 2.61%. Given Edgewell Personal Care’s higher probable upside, analysts clearly believe Edgewell Personal Care is more favorable than Inter Parfums.

Earnings and Valuation

This table compares Edgewell Personal Care and Inter Parfums’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Edgewell Personal Care $2.30 billion 1.14 $5.70 million $3.97 12.21
Inter Parfums $591.25 million 2.84 $41.59 million $1.33 40.34

Inter Parfums has lower revenue, but higher earnings than Edgewell Personal Care. Edgewell Personal Care 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 Edgewell Personal Care on 10 of the 16 factors compared between the two stocks.

Edgewell Personal Care Company Profile

Edgewell Personal Care Company is a manufacturer and marketer of personal care products in the wet shave, sun and skin care, feminine care and infant care categories. As of September 30, 2016, the Company had a portfolio of over 25 brands. It manages its business in four segments: Wet Shave, Sun and Skin Care, Feminine Care and All Other. Its Wet shave products are sold under the Schick, Wilkinson Sword, Edge, Skintimate, Shave Guard and Personna brand names. Its Sun and Skin Care products are sold under the Banana Boat, Hawaiian Tropic, Wet Ones and Playtex brand names and offers Wet Ones, portable hand wipes category, and Playtex household gloves, the branded household glove in the United States. Its Feminine Care segment markets its products under the Playtex, Stayfree, Carefree and o.b. brands and markets pads and liners. Its All Other segment includes infant care, pet care and miscellaneous other products.

Inter Parfums Company Profile

Inter Parfums, Inc., together with its subsidiaries, manufactures, markets, and distributes a range of fragrances and fragrance related products. The company operates in two segments, European Based Operations and United States Based Operations. It offers its fragrance and cosmetic products under the Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Lanvin, Montblanc, Paul Smith, Repetto, Rochas, S.T. Dupont, Van Cleef & Arpels, Abercrombie & Fitch, Agent Provocateur, Anna Sui, bebe, Dunhill, Hollister, French Connection, and Oscar de la Renta brand names, as well as under the Intimate and Aziza names. It sells its products to department stores, perfumeries, specialty stores, domestic and international wholesalers, and distributors. The company was formerly known as Jean Philippe Fragrances, Inc. and changed its name to Inter Parfums, Inc. in July 1999. Inter Parfums, Inc. was founded in 1985 and is headquartered in New York, New York.

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