Betterware de Mexico (NASDAQ:BWMX) versus Velocity Acquisition (NASDAQ:VELO) Critical Review

Betterware de Mexico (NASDAQ:BWMXGet Rating) and Velocity Acquisition (NASDAQ:VELOGet Rating) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Betterware de Mexico and Velocity Acquisition, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Betterware de Mexico 0 0 1 0 3.00
Velocity Acquisition 0 0 0 0 N/A

Betterware de Mexico presently has a consensus price target of $45.00, suggesting a potential upside of 148.07%. Given Betterware de Mexico’s higher possible upside, equities research analysts plainly believe Betterware de Mexico is more favorable than Velocity Acquisition.

Profitability

This table compares Betterware de Mexico and Velocity Acquisition’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Betterware de Mexico 18.24% 109.07% 28.52%
Velocity Acquisition N/A -195.07% 4.41%

Valuation & Earnings

This table compares Betterware de Mexico and Velocity Acquisition’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Betterware de Mexico $495.19 million 1.34 $90.06 million $2.46 7.37
Velocity Acquisition N/A N/A $10.20 million N/A N/A

Betterware de Mexico has higher revenue and earnings than Velocity Acquisition.

Insider & Institutional Ownership

5.2% of Betterware de Mexico shares are held by institutional investors. Comparatively, 72.0% of Velocity Acquisition shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Betterware de Mexico beats Velocity Acquisition on 7 of the 8 factors compared between the two stocks.

Betterware de Mexico Company Profile (Get Rating)

Betterware de Mexico, S.A.B. de C.V. operates as a direct-to-consumer company in Mexico. The company focuses on the home organization segment with a product portfolio, including home solutions, kitchen and food preservation, technology and mobility, and other categories. It serves approximately 3 million households through distributors and associates in approximately 800 communities throughout Mexico. The company was formerly known as Betterware de México, S.A.P.I. de C.V. Betterware de Mexico, S.A.B. de C.V. was founded in 1995 and is based in Zapopan, Mexico. Betterware de Mexico, S.A.B. de C.V. is a subsidiary of Campalier, S.A. de C.V.

Velocity Acquisition Company Profile (Get Rating)

Velocity Acquisition Corp. intends to effect a merger, stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses in digital transformation businesses. The company was incorporated in 2020 and is based in Ridgefield, Connecticut.

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