Reviewing Yatsen (NYSE:YSG) & Herbalife (NYSE:HLF)

Herbalife (NYSE:HLF) and Yatsen (NYSE:YSG) are both small-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Herbalife and Yatsen, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Herbalife	0	4	3	0	2.43
Yatsen	1	0	0	0	1.00

Herbalife currently has a consensus target price of $17.00, indicating a potential upside of 37.51%. Given Herbalife’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Herbalife is more favorable than Yatsen.

Risk & Volatility

Herbalife has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Yatsen has a beta of -1.55, meaning that its stock price is 255% less volatile than the S&P 500.

Profitability

This table compares Herbalife and Yatsen’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%
Yatsen	-3.04%	-4.54%	-3.49%

Valuation & Earnings

This table compares Herbalife and Yatsen”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Herbalife	$5.04 billion	0.26	$228.30 million	$1.55	7.98
Yatsen	$614.62 million	0.52	-$11.56 million	($0.21)	-16.10

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

Summary

Herbalife beats Yatsen on 10 of the 12 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 Yatsen

Yatsen Holding Limited, together with its subsidiaries, engages in the development and sale of beauty products under the Perfect Diary, Little Ondine, Pink Bear, Abby’s Choice, GalÃnic, DR.WU, Eve Lom, and EANTiM brands in the People’s Republic of China. The company offers color cosmetics for lips, eyes, and face; skin care products, including face serums and creams, eye creams, masks, toners, makeup removers, cleansers, ampoules, and anti-acne patches; and beauty tools and kits, sunscreen products, and beauty devices. It sells its products through stores and online channel. The company was formerly known as Mangrove Bay Ecommerce Holding (Cayman) and changed its name to Yatsen Holding Limited in January 2019. Yatsen Holding Limited was founded in 2016 and is headquartered in Guangzhou, China.