Herbalife (NYSE:HLF – Get Free Report) and Mannatech (NASDAQ:MTEX – Get Free Report) are both small-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.
Institutional & Insider Ownership
13.0% of Mannatech shares are owned by institutional investors. 5.1% of Herbalife shares are owned by company insiders. Comparatively, 47.5% of Mannatech shares are owned 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.
Profitability
This table compares Herbalife and Mannatech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Herbalife | 3.16% | -43.90% | 7.89% |
| Mannatech | -6.90% | -2,383.34% | -24.43% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Herbalife | $5.04 billion | 0.25 | $228.30 million | $1.55 | 7.74 |
| Mannatech | $108.04 million | 0.15 | -$15.21 million | ($3.91) | -2.10 |
Herbalife has higher revenue and earnings than Mannatech. Mannatech is trading at a lower price-to-earnings ratio than Herbalife, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Herbalife and Mannatech, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Herbalife | 0 | 4 | 3 | 0 | 2.43 |
| Mannatech | 1 | 0 | 0 | 0 | 1.00 |
Herbalife currently has a consensus target price of $17.00, indicating a potential upside of 41.64%. Given Herbalife’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Herbalife is more favorable than Mannatech.
Risk and Volatility
Herbalife has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Mannatech has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.
Summary
Herbalife beats Mannatech on 12 of the 14 factors compared between the two stocks.
About Herbalife
Herbalife Ltd. provides health and wellness products in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China, and the Asia Pacific. It offers products in the areas of weight management; targeted nutrition; energy, sports, and fitness; outer nutrition; and literature and promotional items. The company also provides weight management products, including meal replacement products, protein shakes, drink mixes, weight loss supplements, healthy snacks, and metabolism boosting teas; targeted nutrition products, which comprise functional beverages, and dietary and nutritional supplements that contain herbs, vitamins, minerals, and other natural ingredients; outer nutrition products, such as facial skin, body, and hair care products; and energy, sports, and fitness products, including N-R-G tea and energy drink products. In addition, it offers literature, promotional, and other materials that comprise start-up kits, sales tools, and educational materials. The company sells its products through sales representatives, independent service providers, and company-operated retail platforms. Herbalife Ltd. was formerly known as Herbalife Nutrition Ltd. and changed its name to Herbalife Ltd. in April 2023. The company was founded in 1980 and is headquartered in Los Angeles, California.
About Mannatech
Mannatech, Incorporated operates as a health and wellness company in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company develops, markets, and sells nutritional supplements; topical and skin care, and anti-aging products; and weight-management and fitness products. It primarily sells its products directly, as well as through e-commerce and network marketing channels. Mannatech, Incorporated was incorporated in 1993 and is headquartered in Flower Mound, Texas.
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