Critical Analysis: Tokyo Lifestyle (NASDAQ:TKLF) versus Synergy CHC (NASDAQ:SNYR)

Synergy CHC (NASDAQ:SNYR) and Tokyo Lifestyle (NASDAQ:TKLF) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Earnings & Valuation

This table compares Synergy CHC and Tokyo Lifestyle”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synergy CHC	$34.83 million	0.58	$2.12 million	$0.29	6.24
Tokyo Lifestyle	$210.12 million	0.06	$6.64 million	N/A	N/A

Tokyo Lifestyle has higher revenue and earnings than Synergy CHC.

Analyst Ratings

This is a summary of current recommendations for Synergy CHC and Tokyo Lifestyle, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synergy CHC	0	1	2	0	2.67
Tokyo Lifestyle	0	1	0	0	2.00

Synergy CHC presently has a consensus target price of $8.50, suggesting a potential upside of 369.61%. Given Synergy CHC’s stronger consensus rating and higher possible upside, research analysts plainly believe Synergy CHC is more favorable than Tokyo Lifestyle.

Volatility & Risk

Synergy CHC has a beta of 3.48, indicating that its share price is 248% more volatile than the S&P 500. Comparatively, Tokyo Lifestyle has a beta of 0.04, indicating that its share price is 96% less volatile than the S&P 500.

Profitability

This table compares Synergy CHC and Tokyo Lifestyle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synergy CHC	7.77%	-19.51%	14.25%
Tokyo Lifestyle	N/A	N/A	N/A

Summary

Synergy CHC beats Tokyo Lifestyle on 7 of the 10 factors compared between the two stocks.

About Synergy CHC

Synergy CHC Corp. engages in the marketing and distribution of branded health and wellness products. The company was founded on December 29, 2010 and is headquartered in Westbrook, ME.

About Tokyo Lifestyle

Yoshitsu Co., Ltd engages in the retail and wholesale of beauty, health, and other products. It offers beauty products, such as cosmetics comprising of foundation, powder, concealer, makeup remover, eyeliner, eye shadow, brow powder, brow pencil, mascara, lip gloss, lipstick, and nail polish; skin care products consisting of facial cleanser, whitening products, sun block, moisturizer, facial mask, eye mask, eye gel, and exfoliating; and cosmetic applicators, such as brush, puff, curler, hair iron, and shaver products. The company also provides body care products, such as shampoo, conditioner, and body wash; and fragrance products consisting of perfume and cologne for women and men. In addition, the company provides facial wash, firming lotion, astringent, and moisturizer products for men; and lip balm, lotion, shampoo, soap, and essence oil for children. Further, the company offers OTC drugs for the treatment of common ailments, such as colds, headaches, stomach pain, cough, and eye strains, as well as medical supplies and devices, including bandages, masks, thermometers, disinfectant sprays, eye masks, contact lens, and contact lens cleaners and solutions. Additionally, the company provides vitamins, minerals, fiber supplements, nutritional yeast, dietary products, and other nutritional supplements; bedding and bath products, and car supplies; and food, alcoholic beverages, and miscellaneous products. It directly operates physical stores in Japan and Hong Kong; online stores in Japan, China, and Korea; and franchise stores in the United States, Canada, and the United Kingdom, as well as wholesale customers in Japan, China, the United States, and Canada. The company was incorporated in 2006 and is headquartered in Tokyo, Japan.