Financial Contrast: European Wax Center (NASDAQ:EWCZ) versus Nu Skin Enterprises (NYSE:NUS)

European Wax Center (NASDAQ:EWCZ) and Nu Skin Enterprises (NYSE:NUS) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

82.1% of European Wax Center shares are owned by institutional investors. Comparatively, 82.8% of Nu Skin Enterprises shares are owned by institutional investors. 5.0% of European Wax Center shares are owned by company insiders. Comparatively, 2.0% of Nu Skin Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for European Wax Center and Nu Skin Enterprises, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
European Wax Center	1	4	1	0	2.00
Nu Skin Enterprises	0	3	0	0	2.00

European Wax Center presently has a consensus price target of $6.93, indicating a potential upside of 61.51%. Nu Skin Enterprises has a consensus price target of $6.88, indicating a potential downside of 43.48%. Given European Wax Center’s higher possible upside, equities research analysts plainly believe European Wax Center is more favorable than Nu Skin Enterprises.

Profitability

This table compares European Wax Center and Nu Skin Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
European Wax Center	4.20%	28.38%	3.93%
Nu Skin Enterprises	6.20%	8.23%	4.05%

Valuation and Earnings

This table compares European Wax Center and Nu Skin Enterprises”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
European Wax Center	$216.92 million	1.09	$10.46 million	$0.20	21.45
Nu Skin Enterprises	$1.73 billion	0.35	-$146.59 million	$2.01	6.05

European Wax Center has higher earnings, but lower revenue than Nu Skin Enterprises. Nu Skin Enterprises is trading at a lower price-to-earnings ratio than European Wax Center, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

European Wax Center has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Nu Skin Enterprises has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Summary

European Wax Center beats Nu Skin Enterprises on 8 of the 13 factors compared between the two stocks.

About European Wax Center

European Wax Center, Inc. operates as the franchisor and operator of out-of-home waxing services in the United States. It offers body and facial waxing services; and pre- and post-service products, including ingrown hair serums, exfoliating gels, brow shapers, and skin treatments. The company was founded in 2004 and is headquartered in Plano, Texas.

About Nu Skin Enterprises

Nu Skin Enterprises, Inc., together with its subsidiaries, engages in the development and distribution of various beauty and wellness products worldwide. It offers skin care devices, cosmetics, and other personal care products, including ageLOC LumiSpa and ageLOC LumiSpa iO; and nutricentials skin care products. The company also provides wellness products, such as LifePak nutritional supplements, ageLOC TR90 weight management system, and Beauty Focus Collagen+. In addition, it is involved in the research and product development of skin care products and nutritional supplements. The company sells its products under the Nu Skin, Pharmanex, and ageLOC brands through retail stores, website, digital platforms, and independent direct sellers and marketers, as well as a service center. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah.