Financial Analysis: Interparfums (NASDAQ:IPAR) vs. Barnes & Noble Education (NYSE:BNED)

Interparfums (NASDAQ:IPAR) and Barnes & Noble Education (NYSE:BNED) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Valuation and Earnings

This table compares Interparfums and Barnes & Noble Education”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interparfums	$1.45 billion	2.58	$164.36 million	$4.99	23.34
Barnes & Noble Education	$1.57 billion	0.18	-$63.21 million	($15.50)	-0.54

Interparfums has higher earnings, but lower revenue than Barnes & Noble Education. Barnes & Noble Education is trading at a lower price-to-earnings ratio than Interparfums, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

55.6% of Interparfums shares are owned by institutional investors. Comparatively, 38.5% of Barnes & Noble Education shares are owned by institutional investors. 43.7% of Interparfums shares are owned by company insiders. Comparatively, 1.0% of Barnes & Noble Education shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Interparfums and Barnes & Noble Education, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interparfums	0	0	4	0	3.00
Barnes & Noble Education	0	0	0	0	0.00

Interparfums presently has a consensus target price of $162.00, suggesting a potential upside of 39.09%. Given Interparfums’ stronger consensus rating and higher possible upside, research analysts clearly believe Interparfums is more favorable than Barnes & Noble Education.

Risk & Volatility

Interparfums has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Barnes & Noble Education has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

Profitability

This table compares Interparfums and Barnes & Noble Education’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interparfums	11.03%	16.45%	11.14%
Barnes & Noble Education	-4.46%	-2.76%	-0.55%

Summary

Interparfums beats Barnes & Noble Education on 12 of the 14 factors compared between the two stocks.

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.

About Barnes & Noble Education

Barnes and Noble Education, Inc. engages in the management and operation of bookstore chains in universities. It operates through the Retail and Wholesale segments. The Retail segment operates college, university, and K-12 school bookstores, physical bookstores, and virtual bookstores. The Wholesale segment sells and distributes new and used textbooks to physical bookstores. The company was founded by Leonard S, Riggio in 1965 and is headquartered in Basking Ridge, NJ.