Among the three, Nature's Sunshine Prod. (NASDAQ:NATR) is the least profitable company as it generated the lowest operating margin at 9.26%. While the operating margin of Nu Skin is 15.7%, Herbalife Ltd. (NYSE:HLF) generates the highest operating margin at 16.2%. Nature’s Sunshine pays shareholders a dividend yield of 1% while the dividend yield of Nu Skin is 2.1%. Herbalife offers the juiciest yield among the three, at 2.9%.
At the end of 2012, Bill Ackman, a famous hedge fund manager, presented his bear case on Herbalife Ltd. (NYSE:HLF), saying that the company was a pyramid scheme. However, activist investor Carl Icahn did not believe so. Icahn has aggressively increased his stake in the company. By May 7, it was reported that he was the biggest shareholder of Herbalife, with a 15.5% stake in the company.
My Foolish takeaway
With the lowest EV multiple, conservative leverage, improving operating performance and recent huge insider buy, Nature's Sunshine Prod. (NASDAQ:NATR) seems to be a decent stock for long-term investors.
The article A Huge Insider Buy of This Nutritional Product Direct Seller originally appeared on Fool.com and is written by Anh HOANG.
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