Head to Head Comparison: RH (NYSE:RH) versus Synergy CHC (NASDAQ:SNYR)

RH (NYSE:RH) and Synergy CHC (NASDAQ:SNYR) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RH	2.57%	-67.71%	2.60%
Synergy CHC	10.02%	-16.92%	22.00%

Institutional and Insider Ownership

90.2% of RH shares are held by institutional investors. 27.0% of RH shares are held by insiders. Comparatively, 56.6% of Synergy CHC shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares RH and Synergy CHC”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RH	$3.18 billion	1.38	$72.41 million	$4.20	55.75
Synergy CHC	$33.59 million	0.94	$2.12 million	$0.38	9.03

RH has higher revenue and earnings than Synergy CHC. Synergy CHC is trading at a lower price-to-earnings ratio than RH, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for RH and Synergy CHC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RH	3	4	10	0	2.41
Synergy CHC	0	0	1	1	3.50

RH currently has a consensus target price of $270.3529, suggesting a potential upside of 15.47%. Synergy CHC has a consensus target price of $10.00, suggesting a potential upside of 191.55%. Given Synergy CHC’s stronger consensus rating and higher probable upside, analysts clearly believe Synergy CHC is more favorable than RH.

About RH

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.

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.