Natura &Co (NTCOY) vs. The Competition Critical Analysis

Natura &Co (NYSE:NTCOY) is one of 29 publicly-traded companies in the “Toilet preparations” industry, but how does it compare to its peers? We will compare Natura &Co to related businesses based on the strength of its institutional ownership, valuation, profitability, earnings, analyst recommendations, dividends and risk.

Insider and Institutional Ownership

6.1% of Natura &Co shares are held by institutional investors. Comparatively, 46.9% of shares of all “Toilet preparations” companies are held by institutional investors. 0.1% of Natura &Co shares are held by company insiders. Comparatively, 14.7% of shares of all “Toilet preparations” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Natura &Co pays an annual dividend of $0.04 per share and has a dividend yield of 0.7%. As a group, “Toilet preparations” companies pay a dividend yield of 2.6% and pay out 77.9% of their earnings in the form of a dividend.

Volatility & Risk

Natura &Co has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, Natura &Co’s peers have a beta of 29.31, indicating that their average share price is 2,831% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Natura &Co and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natura &Co	0	0	0	0	N/A
Natura &Co Competitors	145	1280	1450	36	2.47

As a group, “Toilet preparations” companies have a potential upside of 37.87%. Given Natura &Co’s peers higher possible upside, analysts plainly believe Natura &Co has less favorable growth aspects than its peers.

Profitability

This table compares Natura &Co and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Natura &Co	10.28%	-5.27%	-2.86%
Natura &Co Competitors	-130.83%	-16.71%	-19.44%

Valuation & Earnings

This table compares Natura &Co and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Natura &Co	$5.36 billion	$595.64 million	N/A
Natura &Co Competitors	$4.65 billion	$278.27 million	31.10

Natura &Co has higher revenue and earnings than its peers.

Summary

Natura &Co beats its peers on 6 of the 11 factors compared.

Natura &Co Company Profile

Natura &Co Holding S.A. engages in the manufacturing, distribution, and sale of cosmetics, fragrances, and personal care products in Brazil, Asia, Europe, North America, South America, the Middle East, Africa, and Oceania. The company operates through Natura &Co Latam and Avon International segments. It markets its products under the Natura and Avon brand names through e-commerce, direct selling, business-to-business, franchises, physical stores, and retail markets. Natura &Co Holding S.A. was founded in 1969 and is headquartered in São Paulo, Brazil.