Reviewing Interparfums (NASDAQ:IPAR) and Prenetics Global (NASDAQ:PRE)

Prenetics Global (NASDAQ:PRE) and Interparfums (NASDAQ:IPAR) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares Prenetics Global and Interparfums’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prenetics Global	-47.43%	-21.41%	-15.56%
Interparfums	11.17%	15.21%	10.85%

Volatility and Risk

Prenetics Global has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Interparfums has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Insider and Institutional Ownership

25.0% of Prenetics Global shares are held by institutional investors. Comparatively, 55.6% of Interparfums shares are held by institutional investors. 7.8% of Prenetics Global shares are held by company insiders. Comparatively, 43.6% of Interparfums shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Prenetics Global and Interparfums”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prenetics Global	$154.59 million	2.08	-$37.71 million	($4.16)	-4.57
Interparfums	$1.50 billion	2.45	$168.39 million	$5.23	21.94

Interparfums has higher revenue and earnings than Prenetics Global. Prenetics Global is trading at a lower price-to-earnings ratio than Interparfums, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Prenetics Global and Interparfums, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prenetics Global	1	0	6	1	2.88
Interparfums	2	4	2	1	2.22

Prenetics Global presently has a consensus target price of $35.67, indicating a potential upside of 87.52%. Interparfums has a consensus target price of $123.29, indicating a potential upside of 7.44%. Given Prenetics Global’s stronger consensus rating and higher possible upside, analysts clearly believe Prenetics Global is more favorable than Interparfums.

Dividends

Prenetics Global pays an annual dividend of $2.80 per share and has a dividend yield of 14.7%. Interparfums pays an annual dividend of $3.20 per share and has a dividend yield of 2.8%. Prenetics Global pays out -67.3% of its earnings in the form of a dividend. Interparfums pays out 61.2% 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. Interparfums has raised its dividend for 4 consecutive years. Prenetics Global is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Interparfums beats Prenetics Global on 12 of the 17 factors compared between the two stocks.

About Prenetics Global

Prenetics Global Limited, a genomics-driven health sciences company, engages in revolutionizing prevention, early detection, and treatment. It offers CircleDNA, a prevention arm that uses whole exome sequencing to offer comprehensive consumer DNA test. The company also, through its joint venture, Insighta, engages in pioneering multi-cancer early detection technologies. In addition, the company, through its equity interests in ACT Genomics Holdings Company Limited, is involved in genomic profiling of solid tumors through ACTOnco. Prenetics Global Limited was founded in 2007 and is based in Quarry Bay, Hong Kong.

About Interparfums

Inter Parfums, Inc., together with its subsidiaries, manufactures, markets, and distributes a range of fragrances and fragrance related products in the United States and internationally. It operates in two segments, European Based Operations and United States Based Operations. The company offers its fragrance and cosmetic products under the Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lanvin, Moncler, Montblanc, Rochas, S.T. Dupont, Van Cleef & Arpels, Abercrombie & Fitch, Anna Sui, Donna Karan, DKNY, Emanual Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, Ungaro, and Roberto Cavalli brands, as well as French Connection, Intimate, and Dunhill, Lacoste names. It sells its products to department stores, perfumeries, specialty stores, duty free shops, and domestic and international wholesalers, and distributors, as well as through e-commerce. 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 1982 and is headquartered in New York, New York.