In the competitive world of household and personal products, e.l.f. Beauty, Inc. (ELF) and Nu Skin Enterprises, Inc. (NUS) stand out for their innovative approaches and market presence. Both companies focus on beauty and skincare, but differ in scale and product diversity. This comparison explores their strategies and growth potential to help you decide which stock might be the better addition to your investment portfolio. Let’s dive in and uncover which company offers the most compelling opportunity.
Table of contents
Companies Overview
I will begin the comparison between e.l.f. Beauty, Inc. and Nu Skin Enterprises, Inc. by providing an overview of these two companies and their main differences.
e.l.f. Beauty, Inc. Overview
e.l.f. Beauty, Inc. operates in the Household & Personal Products industry, offering cosmetic and skin care products under various brand names worldwide. Founded in 2004 and headquartered in Oakland, California, the company distributes its products through both retailers and direct-to-consumer channels, including e-commerce. e.l.f. emphasizes affordability and accessibility in the beauty market, with a market cap of approximately 4.9B USD.
Nu Skin Enterprises, Inc. Overview
Nu Skin Enterprises, Inc., founded in 1984 and based in Provo, Utah, develops and distributes beauty and wellness products globally. It sells a wide range of skin care and nutritional supplements under brands like Nu Skin and ageLOC, using direct sales and distributors. Nu Skin has a market cap near 518M USD and operates retail stores, especially in Mainland China, targeting both personal care and wellness segments.
Key similarities and differences
Both companies operate in the consumer defensive sector within the Household & Personal Products industry, focusing on skin care and beauty products. e.l.f. Beauty relies heavily on retail partnerships and e-commerce, while Nu Skin uses a direct sales model supported by distributors and physical stores. Nu Skin has a broader product range, including nutritional supplements, and a significantly larger workforce compared to e.l.f. Beauty.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for e.l.f. Beauty, Inc. and Nu Skin Enterprises, Inc. for their most recent fiscal years, highlighting revenue, profitability, and earnings per share.
| Metric | e.l.f. Beauty, Inc. (ELF) | Nu Skin Enterprises, Inc. (NUS) |
|---|---|---|
| Market Cap | 4.92B | 518M |
| Revenue | 1.31B | 1.73B |
| EBITDA | 206M | -79M |
| EBIT | 162M | -149M |
| Net Income | 112M | -147M |
| EPS | 1.99 | -2.95 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
e.l.f. Beauty, Inc.
e.l.f. Beauty exhibited strong revenue growth, surging from $318M in 2021 to $1.31B in 2025, with net income rising impressively from $6.2M to $112M over the same period. Margins generally improved, highlighted by a favorable gross margin of 71.24% and an EBIT margin of 12.34%. However, in 2025, net margin and EPS declined slightly despite continued revenue expansion.
Nu Skin Enterprises, Inc.
Nu Skin’s revenue declined from $2.59B in 2020 to $1.73B in 2024, accompanied by a net loss of $147M in 2024 versus a $191M profit in 2020. Gross margin remained strong at 68.23%, but EBIT and net margins turned negative, reflecting operational challenges. The most recent fiscal year showed a sharp downturn with negative EBIT and net margins, signaling deteriorating profitability and earnings.
Which one has the stronger fundamentals?
Based on the income statement evaluations, e.l.f. Beauty demonstrates stronger fundamentals with consistent revenue and net income growth, positive margin trends, and an overall favorable assessment. Conversely, Nu Skin faces declining revenues, losses, and unfavorable margin performance, leading to an unfavorable overall income statement opinion. These contrasting trends highlight e.l.f. Beauty’s stronger operational and financial position in recent years.
Financial Ratios Comparison
This table presents the most recent financial ratios for e.l.f. Beauty, Inc. (ELF) and Nu Skin Enterprises, Inc. (NUS) for the fiscal year 2025 and 2024 respectively, providing a snapshot of key performance and financial health metrics.
| Ratios | e.l.f. Beauty, Inc. (2025) | Nu Skin Enterprises, Inc. (2024) |
|---|---|---|
| ROE | 14.7% | -22.5% |
| ROIC | 11.2% | -10.4% |
| P/E | 31.5 | -2.33 |
| P/B | 4.64 | 0.53 |
| Current Ratio | 3.05 | 1.82 |
| Quick Ratio | 2.00 | 1.17 |
| D/E (Debt to Equity) | 0.41 | 0.73 |
| Debt-to-Assets | 25.1% | 32.6% |
| Interest Coverage | 9.20 | -5.74 |
| Asset Turnover | 1.05 | 1.18 |
| Fixed Asset Turnover | 45.63 | 3.71 |
| Payout ratio | 0% | -8.1% |
| Dividend yield | 0% | 3.49% |
Interpretation of the Ratios
e.l.f. Beauty, Inc.
e.l.f. Beauty presents a mixed ratio profile with strengths in quick ratio (2.0), debt-to-equity (0.41), and interest coverage (9.44), indicating solid liquidity and manageable debt. However, unfavorable metrics like ROIC (11.21%), WACC (11.49%), and valuation ratios (PE 31.49, PB 4.64) raise caution. The company does not pay dividends, reflecting possible reinvestment or growth priorities.
Nu Skin Enterprises, Inc.
Nu Skin displays several favorable ratios including a low price-to-book (0.53), price-to-earnings (-2.33), and current ratio (1.82), supporting liquidity and valuation appeal despite negative profitability. However, negative net margin (-8.46%) and ROE (-22.5%) highlight profitability concerns. The company pays dividends with a 3.49% yield, indicating shareholder returns amid operational challenges.
Which one has the best ratios?
Nu Skin shows a more favorable overall ratio evaluation at 57.14% favorable versus e.l.f. Beauty’s 42.86%, mainly due to better valuation and liquidity metrics. However, e.l.f. Beauty’s stronger profitability and leverage ratios balance the picture. Each company presents a distinct risk-reward profile based on their respective financial strengths and weaknesses.
Strategic Positioning
This section compares the strategic positioning of e.l.f. Beauty, Inc. and Nu Skin Enterprises, Inc., focusing on Market position, Key segments, and Exposure to technological disruption:
e.l.f. Beauty, Inc.
- Market position and competitive pressure
- Key segments and business drivers
- Exposure to technological disruption
Nu Skin Enterprises, Inc.
- Larger market cap at 4.9B USD, facing competitive pressure in cosmetics.
- Focus on cosmetics and skincare products sold via retailers and e-commerce.
- No explicit data on technological disruption exposure.
e.l.f. Beauty, Inc. vs Nu Skin Enterprises, Inc. Positioning
e.l.f. Beauty follows a concentrated strategy centered on cosmetics and skincare with a strong retail and e-commerce presence. Nu Skin adopts a more diversified approach across beauty, wellness, and manufacturing segments, potentially spreading risk but adding complexity.
Which has the best competitive advantage?
Both companies are shedding value with ROIC below WACC; e.l.f. Beauty shows improving profitability, while Nu Skin experiences declining returns, indicating a weaker competitive advantage for Nu Skin based on MOAT evaluation.
Stock Comparison
The past year revealed significant bearish trends in both e.l.f. Beauty, Inc. (ELF) and Nu Skin Enterprises, Inc. (NUS), with ELF experiencing a sharper decline and higher volatility, while trading volumes showed contrasting buyer-seller dynamics.
Trend Analysis
e.l.f. Beauty, Inc. (ELF) showed a strong bearish trend over the past 12 months with a price drop of -53.44%, marked by accelerating decline and high volatility (std deviation 43.02). The stock’s highest and lowest prices were 217.4 and 52.65 respectively.
Nu Skin Enterprises, Inc. (NUS) also displayed a bearish trend over the past year, with a smaller price decrease of -16.93%, accelerating downward movement, and much lower volatility (std deviation 2.34). The price ranged between 13.83 and 5.48 during this period.
Comparing both stocks, ELF underperformed NUS with a sharper decline in market value and higher price volatility, delivering the lowest market performance over the last 12 months.
Target Prices
The current analyst consensus for target prices reflects cautious optimism for these stocks.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| e.l.f. Beauty, Inc. | 165 | 85 | 128.17 |
| Nu Skin Enterprises, Inc. | 11 | 11 | 11 |
Analysts expect e.l.f. Beauty’s stock to appreciate significantly above its current price of 86.58 USD, while Nu Skin’s target suggests a modest upside from its 10.45 USD price. Overall, e.l.f. shows higher growth potential compared to Nu Skin.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for e.l.f. Beauty, Inc. and Nu Skin Enterprises, Inc.:
Rating Comparison
e.l.f. Beauty, Inc. Rating
- Rating: C+ with a very favorable status.
- Discounted Cash Flow Score: Moderate at 3.
- ROE Score: Moderate efficiency at 3.
- ROA Score: Moderate asset utilization at 3.
- Debt To Equity Score: Moderate financial risk at 2.
- Overall Score: Moderate at 2.
Nu Skin Enterprises, Inc. Rating
- Rating: A with a very favorable status.
- Discounted Cash Flow Score: Favorable at 4.
- ROE Score: Favorable efficiency at 4.
- ROA Score: Favorable asset utilization at 4.
- Debt To Equity Score: Moderate financial risk at 3.
- Overall Score: Favorable at 4.
Which one is the best rated?
Based strictly on the provided data, Nu Skin Enterprises, Inc. holds consistently higher scores and a superior overall rating of A, compared to e.l.f. Beauty’s C+ rating and lower scores across key financial metrics.
Scores Comparison
Here is a comparison of e.l.f. Beauty, Inc. and Nu Skin Enterprises, Inc. based on their financial scores:
ELF Scores
- Altman Z-Score: 3.44, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 5, reflecting average financial strength.
NUS Scores
- Altman Z-Score: 3.94, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 8, reflecting very strong financial strength.
Which company has the best scores?
Nu Skin Enterprises shows stronger financial health with a higher Altman Z-Score and a very strong Piotroski Score compared to e.l.f. Beauty’s safe zone Z-Score and average Piotroski Score. This suggests NUS currently has better financial stability and strength.
Grades Comparison
Here is a comparison of the latest reliable grading data for e.l.f. Beauty, Inc. and Nu Skin Enterprises, Inc.:
e.l.f. Beauty, Inc. Grades
The table below shows recent analyst grades for e.l.f. Beauty, Inc. from recognized grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Maintain | Neutral | 2025-12-22 |
| JP Morgan | Maintain | Overweight | 2025-12-18 |
| Goldman Sachs | Maintain | Buy | 2025-11-07 |
| Baird | Maintain | Outperform | 2025-11-06 |
| Jefferies | Maintain | Buy | 2025-11-06 |
| Piper Sandler | Downgrade | Neutral | 2025-11-06 |
| UBS | Maintain | Neutral | 2025-11-06 |
| Canaccord Genuity | Maintain | Buy | 2025-11-06 |
| JP Morgan | Maintain | Overweight | 2025-11-06 |
| Jefferies | Maintain | Buy | 2025-10-28 |
Overall, the grades for e.l.f. Beauty, Inc. show a generally positive trend, with multiple Buy and Outperform ratings and only one recent downgrade to Neutral.
Nu Skin Enterprises, Inc. Grades
The table below presents analyst grades for Nu Skin Enterprises, Inc. from verified grading firms.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Maintain | Neutral | 2024-12-20 |
| Citigroup | Maintain | Neutral | 2024-10-22 |
| DA Davidson | Maintain | Neutral | 2024-08-12 |
| Citigroup | Maintain | Neutral | 2024-08-09 |
| DA Davidson | Maintain | Neutral | 2024-05-09 |
| DA Davidson | Maintain | Neutral | 2024-01-05 |
| Stifel | Maintain | Hold | 2023-10-16 |
| Stifel | Maintain | Hold | 2023-10-15 |
| Citigroup | Maintain | Neutral | 2023-09-29 |
| Citigroup | Maintain | Neutral | 2023-09-28 |
Grades for Nu Skin Enterprises, Inc. are predominantly Neutral and Hold, indicating a more cautious analyst stance with no recent upgrades.
Which company has the best grades?
e.l.f. Beauty, Inc. has received more favorable grades, including several Buy and Outperform ratings, compared to Nu Skin Enterprises, Inc., which mostly holds Neutral and Hold ratings. This disparity may influence investors seeking stronger analyst conviction towards e.l.f. Beauty.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for e.l.f. Beauty, Inc. (ELF) and Nu Skin Enterprises, Inc. (NUS) based on recent financial and operational data.
| Criterion | e.l.f. Beauty, Inc. (ELF) | Nu Skin Enterprises, Inc. (NUS) |
|---|---|---|
| Diversification | Limited product segmentation; focused on beauty products | More diversified with Nu Skin, Manufacturing, and Rhyz segments |
| Profitability | Neutral net margin (8.53%), ROE neutral (14.73%), ROIC slightly below WACC (11.21% < 11.49%) | Negative net margin (-8.46%), negative ROE (-22.5%), ROIC well below WACC (-10.4% vs 6.24%) |
| Innovation | Growing ROIC trend indicating improving profitability | Declining ROIC trend reflecting deteriorating profitability |
| Global presence | Moderate global footprint with increasing operational efficiency | Established global presence with significant revenue from multiple product lines |
| Market Share | Mid-sized player with stable asset turnover (1.05) and fixed asset turnover (45.63) | Larger revenue base (~$1.45B in main segment) but declining profitability affects market strength |
Key takeaways: e.l.f. Beauty shows improving profitability despite currently shedding value, with strengths in operational efficiency and liquidity. Nu Skin Enterprises faces significant challenges with declining profitability and negative returns but benefits from broader diversification and a larger revenue base. Caution is advised when considering NUS due to its value destruction trend.
Risk Analysis
Below is a comparison of key risks associated with e.l.f. Beauty, Inc. (ELF) and Nu Skin Enterprises, Inc. (NUS) based on the most recent data available.
| Metric | e.l.f. Beauty, Inc. (ELF) | Nu Skin Enterprises, Inc. (NUS) |
|---|---|---|
| Market Risk | High beta (1.72) implies greater volatility and sensitivity to market swings. | Moderate beta (0.98) suggests less volatility than ELF. |
| Debt level | Moderate leverage, Debt/Equity 0.41, Debt to Assets 25.08% (favorable). | Higher leverage, Debt/Equity 0.73, Debt to Assets 32.56% (neutral). |
| Regulatory Risk | Moderate, operating in cosmetics with evolving regulations on ingredients and safety. | Moderate to high, given global operations including China, with complex regulatory environments. |
| Operational Risk | Relies on direct-to-consumer and retail channels; supply chain disruptions could impact sales. | Diverse product lines and retail presence, but reported negative net margins indicate operational challenges. |
| Environmental Risk | Moderate, increasing pressure on sustainable sourcing and packaging in personal care industry. | Moderate, similar industry pressures plus scrutiny on supplement ingredient sourcing. |
| Geopolitical Risk | Limited exposure, mostly US and international distributors. | Higher geopolitical risk due to significant operations in Mainland China. |
The most likely and impactful risks revolve around market volatility for ELF due to its higher beta, and operational and regulatory challenges for NUS, especially given its negative profitability and significant exposure to China’s regulatory environment. Investors should monitor ELF’s valuation metrics which appear stretched, and NUS’s continuing efforts to return to profitability amid geopolitical complexities.
Which Stock to Choose?
e.l.f. Beauty, Inc. (ELF) shows strong income growth with a favorable overall income statement and mostly neutral to unfavorable financial ratios, including a slightly unfavorable ROIC versus WACC indicating value destruction despite growing profitability. Its rating is very favorable with a C+ grade, supported by moderate scores in key areas.
Nu Skin Enterprises, Inc. (NUS) displays unfavorable income trends, with negative profitability and declining ROIC compared to WACC, signaling value destruction and decreasing profitability. However, its financial ratios are globally favorable, and it holds a very favorable A rating with strong Altman Z-Score and Piotroski Score.
Investors focused on growth may find ELF’s improving profitability and strong income growth appealing, while those prioritizing financial stability and strong ratings might view NUS’s favorable ratios and high scores as attractive despite income challenges. The choice could depend on the investor’s risk tolerance and strategy.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of e.l.f. Beauty, Inc. and Nu Skin Enterprises, Inc. to enhance your investment decisions:
