Critical Comparison: Interparfums (IPAR) vs. Its Rivals

Interparfums (NASDAQ:IPAR) is one of 55 publicly-traded companies in the “Personal Care Products” industry, but how does it weigh in compared to its rivals? We will compare Interparfums to related businesses based on the strength of its institutional ownership, analyst recommendations, profitability, dividends, earnings, valuation and risk.

Dividends

Interparfums pays an annual dividend of $3.20 per share and has a dividend yield of 2.4%. Interparfums pays out 60.3% of its earnings in the form of a dividend. As a group, “Personal Care Products” companies pay a dividend yield of 3.8% and pay out 48.5% of their earnings in the form of a dividend. Interparfums has increased its dividend for 4 consecutive years. Interparfums lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

Interparfums has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Interparfums’ rivals have a beta of 0.80, meaning that their average stock price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Interparfums and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interparfums	1	5	2	0	2.12
Interparfums Competitors	903	2940	3662	229	2.42

Interparfums presently has a consensus target price of $125.29, indicating a potential downside of 5.93%. As a group, “Personal Care Products” companies have a potential upside of 2.46%. Given Interparfums’ rivals stronger consensus rating and higher probable upside, analysts clearly believe Interparfums has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

55.6% of Interparfums shares are held by institutional investors. Comparatively, 48.6% of shares of all “Personal Care Products” companies are held by institutional investors. 43.6% of Interparfums shares are held by insiders. Comparatively, 11.7% of shares of all “Personal Care Products” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Interparfums and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interparfums	11.33%	15.43%	10.99%
Interparfums Competitors	-4.68%	-66.64%	-0.50%

Valuation & Earnings

This table compares Interparfums and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Interparfums	$1.50 billion	$168.39 million	25.08
Interparfums Competitors	$7.93 billion	$1.11 billion	8.91

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

Summary

Interparfums rivals beat Interparfums on 8 of the 15 factors compared.

Interparfums Company Profile

Interparfums, Inc. develops, markets and distributes prestige fragrances and related beauty products. Its offerings include perfumes, colognes and fragrance-related products created with fashion, luxury and lifestyle brands. Founded in 1982 by Jean Madar and Philippe Benacin, the company has built a portfolio through licensing agreements and brand ownership. Its fragrance brands have included Coach, Jimmy Choo, Montblanc and Lacoste; its portfolio can change as licensing agreements begin or end.