Critical Survey: Interparfums (NASDAQ:IPAR) and School Specialty (OTCMKTS:SCOO)

School Specialty (OTCMKTS:SCOO) and Interparfums (NASDAQ:IPAR) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Insider and Institutional Ownership

55.6% of Interparfums shares are held by institutional investors. 41.0% of School Specialty shares are held by insiders. Comparatively, 43.7% of Interparfums shares 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.

Earnings and Valuation

This table compares School Specialty and Interparfums”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
School Specialty	N/A	N/A	N/A	N/A	N/A
Interparfums	$1.45 billion	1.86	$164.36 million	$5.11	16.48

Interparfums has higher revenue and earnings than School Specialty.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for School Specialty and Interparfums, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
School Specialty	0	0	0	0	0.00
Interparfums	0	2	5	1	2.88

Interparfums has a consensus target price of $121.00, indicating a potential upside of 43.72%. Given Interparfums’ stronger consensus rating and higher possible upside, analysts clearly believe Interparfums is more favorable than School Specialty.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
School Specialty	N/A	N/A	N/A
Interparfums	11.24%	16.31%	11.22%

Summary

Interparfums beats School Specialty on 10 of the 10 factors compared between the two stocks.

About School Specialty

School Specialty, Inc., together with its subsidiaries, provides supplies, furniture, technology products, and curriculum solutions to the education marketplace in the United States and Canada. The company’s Distribution segment offers office products, classroom supplies, janitorial and sanitation supplies, school equipment, school and student safety and security products and services, physical education products, art supplies and paper, and others; physical education programs, solutions, resources, and equipment to improve student and staff wellness; and science education products, supplemental curriculum, and lab equipment and supplies. It also provides supplemental learning materials, teaching resources, classroom libraries, and manipulatives; intervention products; educator-inspired quality audio technology products, including multi-media, audio visual, and presentation equipment for the PreK-12 education market; and school-specific furniture and equipment for in-school, in-classroom, and outdoor use, as well as project management and design services for school refurbishment and new construction projects. This segment offers its products under the Childcraft, Sax Arts & Crafts, Califone, Classroom Select, Sportime, Abilitations, Hammond & Stephens, Brodhead Garrett, School Smart, Royal Seating, Projects by Design, CPO Science, Frey Scientific, Educator’s Publishing Service, Wordly Wise 3000, Explode the Code, ThinkMath!, SSI Guardian, Making Connections, S.P.I.R.E, Buckle Down, and Coach brands. Its Curriculum segment develops and sells standards-based curriculum science products, such as laboratory supplies and equipment, and furniture under the FOSS, Frey Scientific, Delta Science Module, Delta Education, CPO Science, and Neo/SCI brand names. The company offers its products through its sales force, catalogs, and its proprietary e-commerce Websites. School Specialty, Inc. was founded in 1959 and is headquartered in Greenville, Wisconsin.

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.