Head to Head Review: Interparfums (NASDAQ:IPAR) vs. Ceconomy (OTCMKTS:MTTRY)

Ceconomy (OTCMKTS:MTTRY) and Interparfums (NASDAQ:IPAR) are both mid-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Insider and Institutional Ownership

55.6% of Interparfums shares are owned by institutional investors. 43.7% of Interparfums shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Ceconomy and Interparfums”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ceconomy	$24.34 billion	0.09	$82.44 million	$0.07	13.29
Interparfums	$1.46 billion	1.77	$164.36 million	$5.11	15.77

Interparfums has lower revenue, but higher earnings than Ceconomy. Ceconomy is trading at a lower price-to-earnings ratio than Interparfums, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ceconomy	0.71%	38.36%	2.07%
Interparfums	11.03%	16.45%	11.14%

Analyst Recommendations

This is a breakdown of current ratings for Ceconomy and Interparfums, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ceconomy	0	0	0	1	4.00
Interparfums	0	2	5	1	2.88

Interparfums has a consensus target price of $121.00, indicating a potential upside of 50.11%. Given Interparfums’ higher possible upside, analysts clearly believe Interparfums is more favorable than Ceconomy.

Volatility & Risk

Ceconomy has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Interparfums has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.

Dividends

Ceconomy pays an annual dividend of $0.02 per share and has a dividend yield of 2.2%. Interparfums pays an annual dividend of $3.20 per share and has a dividend yield of 4.0%. Ceconomy pays out 28.6% of its earnings in the form of a dividend. Interparfums pays out 62.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Interparfums has increased its dividend for 4 consecutive years. Interparfums is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Interparfums beats Ceconomy on 13 of the 17 factors compared between the two stocks.

About Ceconomy

Ceconomy AG, together with its subsidiaries, engages in the consumer electronics retail business. It operates stores under the MediaMarkt and Saturn brands. The company offers professional assistance for the installation, connection, and troubleshooting of electronic devices at home under the Deutsche Technikberatung brand. It operates in Germany, Austria, Switzerland, and Hungary, as well as in Western, Southern, and Eastern Europe. Ceconomy AG is based in Düsseldorf, Germany.

About Interparfums

Inter Parfums, Inc., together with its subsidiaries, manufactures, markets, and distributes a range of fragrances and fragrance related products in the United States and internationally. It operates in two segments, European Based Operations and United States Based Operations. The company offers its fragrance and cosmetic products under the Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lanvin, Moncler, Montblanc, Rochas, S.T. Dupont, Van Cleef & Arpels, Abercrombie & Fitch, Anna Sui, Donna Karan, DKNY, Emanual Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, Ungaro, and Roberto Cavalli brands, as well as French Connection, Intimate, and Dunhill, Lacoste names. It sells its products to department stores, perfumeries, specialty stores, duty free shops, and domestic and international wholesalers, and distributors, as well as through e-commerce. The company was formerly known as Jean Philippe Fragrances, Inc. and changed its name to Inter Parfums, Inc. in July 1999. Inter Parfums, Inc. was founded in 1982 and is headquartered in New York, New York.