Critical Contrast: Lifevantage (LFVN) versus Its Competitors

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

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Lifevantage	$182.59 million	$5.07 million	13.64
Lifevantage Competitors	$7.78 billion	$1.11 billion	8.60

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

Analyst Ratings

This is a breakdown of recent recommendations for Lifevantage and its peers, 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	896	2922	3646	228	2.42

Lifevantage currently has a consensus target price of $5.50, indicating a potential upside of 0.82%. As a group, “Personal Care Products” companies have a potential downside of 0.54%. Given Lifevantage’s higher probable upside, equities analysts plainly believe Lifevantage is more favorable than its peers.

Risk & Volatility

Lifevantage has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Lifevantage’s peers have a beta of 0.81, suggesting that their average share price is 19% less volatile than the S&P 500.

Dividends

Lifevantage pays an annual dividend of $0.20 per share and has a dividend yield of 3.7%. 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 3.6% and pay out 48.3% of their earnings in the form of a dividend. Lifevantage has raised its dividend for 3 consecutive years.

Profitability

This table compares Lifevantage and its peers’ 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	-5.55%	-65.95%	-0.30%

Institutional & Insider Ownership

35.3% of Lifevantage shares are held by institutional investors. Comparatively, 47.9% of shares of all “Personal Care Products” companies are held by institutional investors. 13.6% of Lifevantage shares are held by company insiders. Comparatively, 11.7% 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 is poised for long-term growth.

Summary

Lifevantage peers beat Lifevantage on 8 of the 15 factors compared.

About Lifevantage

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.