Contrasting Interparfums (NASDAQ:IPAR) & Luvu Brands (OTCMKTS:LUVU)

Luvu Brands (OTCMKTS:LUVU) and Interparfums (NASDAQ:IPAR) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Luvu Brands and Interparfums, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luvu Brands	0	0	0	0	0.00
Interparfums	0	3	3	1	2.71

Interparfums has a consensus target price of $105.20, indicating a potential upside of 16.54%. Given Interparfums’ stronger consensus rating and higher probable upside, analysts clearly believe Interparfums is more favorable than Luvu Brands.

Profitability

This table compares Luvu Brands and Interparfums’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luvu Brands	-4.23%	-53.41%	-10.68%
Interparfums	11.32%	15.47%	10.82%

Volatility and Risk

Luvu Brands has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Interparfums has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Institutional & Insider Ownership

55.6% of Interparfums shares are owned by institutional investors. 45.9% of Luvu Brands shares are owned by company insiders. Comparatively, 43.7% of Interparfums shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Luvu Brands and Interparfums”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luvu Brands	$24.69 million	0.09	-$450,000.00	($0.01)	-2.80
Interparfums	$1.49 billion	1.94	$168.39 million	$5.27	17.13

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

Summary

Interparfums beats Luvu Brands on 13 of the 15 factors compared between the two stocks.

About Luvu Brands

Luvu Brands, Inc. designs, manufactures, and markets various consumer lifestyle products worldwide. The company offers sensuality and intimacy products under the Liberator brand; and bed therapy products, which assistive in relieving medical conditions associated with acid reflux, surgery recovery, and chronic pain under the Avana brand. It also provides daybeds, sofas, and beanbags made from virgin and re-purposed polyurethane foam under the Jaxx brand. In addition, the company is involved in the purchase and resale of products to e-merchants, retailers, and e-commerce sites, as well as provision of contract manufacturing and fulfillment services. It markets its products through various websites comprising liberator.com, jaxxliving.com, and avanacomfort.com, as well as through distributors, retailers, and e-tailers across various channels of adult, mass market, drug, and specialty accounts. The company was formerly known as Liberator, Inc. and changed its name to Luvu Brands, Inc. in November 2015. Luvu Brands, Inc. was incorporated in 1999 and is headquartered in Atlanta, Georgia.

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.