Lifevantage (LFVN) vs. Its Peers Critical Analysis

Lifevantage (NASDAQ:LFVN) is one of 55 publicly-traded companies in the “Personal Care Products” industry, but how does it contrast to its rivals? We will compare Lifevantage to similar businesses based on the strength of its profitability, valuation, earnings, institutional ownership, analyst recommendations, dividends and risk.

Dividends

Lifevantage pays an annual dividend of $0.20 per share and has a dividend yield of 3.4%. Lifevantage pays out 50.0% of its earnings in the form of a dividend. As a group, “Personal Care Products” companies pay a dividend yield of 4.0% and pay out 51.1% of their earnings in the form of a dividend. Lifevantage has increased its dividend for 3 consecutive years.

Insider & Institutional Ownership

35.3% of Lifevantage shares are held by institutional investors. Comparatively, 48.6% of shares of all “Personal Care Products” companies are held by institutional investors. 13.6% of Lifevantage shares are held by company insiders. Comparatively, 11.9% of shares of all “Personal Care Products” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Lifevantage and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lifevantage	$182.59 million	$5.07 million	14.72
Lifevantage Competitors	$8.30 billion	$1.11 billion	11.72

Lifevantage’s rivals have higher revenue and earnings than Lifevantage. Lifevantage is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current recommendations and price targets for Lifevantage and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lifevantage	1	2	0	0	1.67
Lifevantage Competitors	888	2902	3636	225	2.42

Lifevantage currently has a consensus price target of $5.50, indicating a potential downside of 6.62%. As a group, “Personal Care Products” companies have a potential upside of 3.66%. Given Lifevantage’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Lifevantage has less favorable growth aspects than its rivals.

Profitability

This table compares Lifevantage and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lifevantage	2.78%	21.56%	11.62%
Lifevantage Competitors	-5.60%	-66.38%	-0.33%

Volatility & Risk

Lifevantage has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Lifevantage’s rivals have a beta of 0.81, indicating that their average stock price is 19% less volatile than the S&P 500.

Summary

Lifevantage rivals beat Lifevantage on 9 of the 15 factors compared.

Lifevantage Company Profile

LifeVantage Corporation engages in the identification, research, development, formulation, and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management, skin and hair care, bath and body, and targeted relief products. It offers Protandim, a dietary supplement; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids, and vitamin D3; LifeVantage ProBio, a dietary supplement to support gut health; PhysIQ, a weight management system; LifeVantage IC Bright, a supplement to support eye and brain health, reduce eye fatigue and strain, supports cognitive functions, and support normal sleep patterns; Petandim for Dogs, a supplement to combat oxidative stress in dogs; and Axio, a nootropic energy drink mix. The company also provides anti-aging skin care products, including liquid collagen, facial cleansers, perfecting lotions, eye serums, anti-aging creams, hand creams, beauty serum, as well as hair care products, such as invigorating shampoos, nourishing conditioners, and scalp serums under the LifeVantage TrueScience brand name. In addition, it offers bath and body, and targeted relief products, such as body lotion, body wash, body butter, deodorant, soothing balm, and body rub under the TrueScience brand name. It sells its products through its website and network of independent distributors in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore, and the Philippines. The company was founded in 2003 and is headquartered in Lehi, Utah.