Head-To-Head Analysis: Natura &Co (NTCOY) vs. The Competition

Natura &Co (NYSE:NTCOY) is one of 29 public companies in the “Toilet preparations” industry, but how does it weigh in compared to its rivals? We will compare Natura &Co to related companies based on the strength of its analyst recommendations, valuation, risk, profitability, earnings, institutional ownership and dividends.

Insider and Institutional Ownership

6.1% of Natura &Co shares are held by institutional investors. Comparatively, 46.9% of shares of all “Toilet preparations” companies are held by institutional investors. 0.1% of Natura &Co shares are held by insiders. Comparatively, 14.7% of shares of all “Toilet preparations” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Natura &Co and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Natura &Co	10.28%	-5.27%	-2.86%
Natura &Co Competitors	-130.83%	-16.71%	-19.44%

Dividends

Natura &Co pays an annual dividend of $0.25 per share and has a dividend yield of 4.5%. Natura &Co pays out 78.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Toilet preparations” companies pay a dividend yield of 2.6% and pay out 77.9% of their earnings in the form of a dividend.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Natura &Co	$5.36 billion	$595.64 million	17.38
Natura &Co Competitors	$4.65 billion	$278.27 million	30.79

Natura &Co has higher revenue and earnings than its rivals. Natura &Co is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Natura &Co and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natura &Co	0	0	0	0	N/A
Natura &Co Competitors	146	1280	1453	36	2.47

As a group, “Toilet preparations” companies have a potential upside of 34.33%. Given Natura &Co’s rivals higher possible upside, analysts plainly believe Natura &Co has less favorable growth aspects than its rivals.

Volatility & Risk

Natura &Co has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500. Comparatively, Natura &Co’s rivals have a beta of 29.31, suggesting that their average stock price is 2,831% more volatile than the S&P 500.

About Natura &Co

Natura &Co Holding S.A. engages in the manufacturing, distribution, and sale of cosmetics, fragrances, and personal care products in Brazil, Asia, Europe, North America, South America, the Middle East, Africa, and Oceania. The company operates through Natura &Co Latam and Avon International segments. It markets its products under the Natura and Avon brand names through e-commerce, direct selling, business-to-business, franchises, physical stores, and retail markets. Natura &Co Holding S.A. was founded in 1969 and is headquartered in São Paulo, Brazil.