Critical Analysis: The Hain Celestial Group (NASDAQ:HAIN) vs. Celsius (NASDAQ:CELH)

Celsius (NASDAQ:CELH) and The Hain Celestial Group (NASDAQ:HAIN) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Celsius and The Hain Celestial Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celsius	0	4	21	0	2.84
The Hain Celestial Group	2	6	0	0	1.75

Celsius presently has a consensus target price of $58.65, suggesting a potential upside of 103.72%. The Hain Celestial Group has a consensus target price of $1.06, suggesting a potential upside of 108.19%. Given The Hain Celestial Group’s higher probable upside, analysts clearly believe The Hain Celestial Group is more favorable than Celsius.

Risk & Volatility

Celsius has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, The Hain Celestial Group has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Insider & Institutional Ownership

61.0% of Celsius shares are held by institutional investors. Comparatively, 97.0% of The Hain Celestial Group shares are held by institutional investors. 2.3% of Celsius shares are held by company insiders. Comparatively, 1.7% of The Hain Celestial Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Celsius and The Hain Celestial Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celsius	$2.52 billion	2.93	$108.00 million	$0.43	66.95
The Hain Celestial Group	$1.56 billion	0.03	-$530.84 million	($5.74)	-0.09

Celsius has higher revenue and earnings than The Hain Celestial Group. The Hain Celestial Group is trading at a lower price-to-earnings ratio than Celsius, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Celsius and The Hain Celestial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Celsius	5.85%	37.95%	9.62%
The Hain Celestial Group	-35.47%	-3.52%	-0.89%

Summary

Celsius beats The Hain Celestial Group on 12 of the 14 factors compared between the two stocks.

About Celsius

Celsius Holdings, Inc. develops, processes, markets, distributes, and sells functional energy drinks and liquid supplements in the United States, Australia, New Zealand, Canadian, European, Middle Eastern, Asia-Pacific, and internationally. The company offers CELSIUS, a fitness drink or supplement designed to accelerate metabolism and burn body fat; various flavors and carbonated and non-carbonated functional energy drinks under the CELSIUS Originals and Vibe name, as well as functional energy drink under the CELSIUS Essentials and CELSIUS On-the-Go Powder names; and CELSIUS ready-to drink products. It distributes its products through direct-to-store delivery, distributors, supermarkets, convenience stores, drug stores, nutritional stores, and mass merchants, as well as health clubs, gyms, the military, and e-commerce websites. The company was formerly known as Vector Ventures, Inc. and changed its name to Celsius Holdings, Inc. in January 2007. Celsius Holdings, Inc. was founded in 2004 and is headquartered in Boca Raton, Florida.

About The Hain Celestial Group

The Hain Celestial Group, Inc. manufactures, markets, and sells organic and natural products in United States, United Kingdom, Europe, and internationally. It operates through two segments: North America and International. The company offers infant formula; infant, toddler, and kids' food; plant-based beverages and frozen desserts, such as soy, rice, oat, and spelt; and condiments. It also provides cooking and culinary oils; cereal bars; fresh and aseptic soups; yogurts; and nut butters. In addition, the company offers hot-eating desserts, refrigerated and frozen plant-based meat-alternative products, jams, fruit spreads, jellies, honey, natural sweeteners, syrups, dessert sauces, and marmalade products, as well as other food products. Further, it provides snack products comprising potato, root vegetable and other exotic vegetable chips, straws, tortilla chips; and personal care products that include hand, skin, hair, and oral care products, as well as deodorants, baby food, sunscreens, and other products under the Alba Botanica, Avalon Organics, Earth's Best, JASON, Live Clean, and Queen Helene brands name. Additionally, the company offers herbal, green, black, wellness, rooibos, and chai tea under the Celestial Seasonings brand. It sells pantry products under the Spectrum, Spectrum Essentials, MaraNatha, Imagine broths, Hain Pure Foods, Health Valley, and Hollywood brands. It sells its products through specialty and natural food distributors, supermarkets, natural food stores, mass-market and e-commerce retailers, food service channels and clubs, and drug and convenience stores. The company was incorporated in 1993 and is headquartered in Hoboken, New Jersey.