LuxExperience B.V. (NYSE:LUXE) and Betterware de Mexico SAPI de C (NYSE:BWMX) Financial Review

Betterware de Mexico SAPI de C (NYSE:BWMX) and LuxExperience B.V. (NYSE:LUXE) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Institutional & Insider Ownership

12.7% of Betterware de Mexico SAPI de C shares are owned by institutional investors. Comparatively, 10.1% of LuxExperience B.V. shares are owned by institutional investors. 1.9% of LuxExperience B.V. shares are owned by 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.

Analyst Recommendations

This is a summary of recent ratings for Betterware de Mexico SAPI de C and LuxExperience B.V., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Betterware de Mexico SAPI de C	1	1	0	0	1.50
LuxExperience B.V.	1	0	0	0	1.00

Volatility and Risk

Betterware de Mexico SAPI de C has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, LuxExperience B.V. has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Dividends

Betterware de Mexico SAPI de C pays an annual dividend of $1.03 per share and has a dividend yield of 7.1%. LuxExperience B.V. pays an annual dividend of $0.35 per share and has a dividend yield of 3.6%. Betterware de Mexico SAPI de C pays out 73.6% of its earnings in the form of a dividend. LuxExperience B.V. pays out 7.2% 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.

Valuation and Earnings

This table compares Betterware de Mexico SAPI de C and LuxExperience B.V.”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Betterware de Mexico SAPI de C	$773.60 million	0.70	$39.07 million	$1.40	10.37
LuxExperience B.V.	$1.26 billion	0.67	$620.57 million	$4.89	2.00

LuxExperience B.V. has higher revenue and earnings than Betterware de Mexico SAPI de C. LuxExperience B.V. is trading at a lower price-to-earnings ratio than Betterware de Mexico SAPI de C, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Betterware de Mexico SAPI de C and LuxExperience B.V.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Betterware de Mexico SAPI de C	7.23%	102.61%	11.58%
LuxExperience B.V.	45.47%	90.47%	54.10%

About Betterware de Mexico SAPI de C

Betterware de Mexico, S.A.B. de C.V. operates as a direct-to-consumer company in Mexico. The company focuses on the home organization segment with a product portfolio, including home solutions, kitchen and food preservation, technology and mobility, and other categories. It serves approximately 3 million households through distributors and associates in approximately 800 communities throughout Mexico. The company was formerly known as Betterware de México, S.A.P.I. de C.V. Betterware de Mexico, S.A.B. de C.V. was founded in 1995 and is based in Zapopan, Mexico. Betterware de Mexico, S.A.B. de C.V. is a subsidiary of Campalier, S.A. de C.V.

About LuxExperience B.V.

MYT Netherlands Parent B.V., through its subsidiary, Mytheresa Group GmbH, operates a luxury e-commerce platform for fashion consumers in Germany, the United States, the rest of Europe, and internationally. The company sells clothes, bags, shoes, accessories, and fine jewelry through online and retail stores. It serves high-income luxury consumers. The company was founded in 1987 and is based in Munich, Germany.