Critical Comparison: FitLife Brands (NASDAQ:FTLF) & Happiness Development Group (NASDAQ:HAPP)

FitLife Brands (NASDAQ:FTLF) and Happiness Development Group (NASDAQ:HAPP) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.

Insider & Institutional Ownership

2.3% of FitLife Brands shares are held by institutional investors. Comparatively, 15.2% of Happiness Development Group shares are held by institutional investors. 61.2% of FitLife Brands shares are held by company insiders. Comparatively, 15.6% of Happiness Development Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares FitLife Brands and Happiness Development Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FitLife Brands	10.05%	27.17%	14.23%
Happiness Development Group	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations for FitLife Brands and Happiness Development Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FitLife Brands	0	0	0	0	N/A
Happiness Development Group	0	0	0	0	N/A

Valuation & Earnings

This table compares FitLife Brands and Happiness Development Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FitLife Brands	$52.70 million	2.58	$5.30 million	$1.08	27.41
Happiness Development Group	$95.59 million	0.08	-$49.19 million	$0.48	2.38

FitLife Brands has higher earnings, but lower revenue than Happiness Development Group. Happiness Development Group is trading at a lower price-to-earnings ratio than FitLife Brands, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

FitLife Brands has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Happiness Development Group has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500.

Summary

FitLife Brands beats Happiness Development Group on 9 of the 11 factors compared between the two stocks.

About FitLife Brands

FitLife Brands, Inc. provides nutritional supplements for health-conscious consumers in the United States and internationally. The company offers weight loss, general health, and sports nutrition supplements; precision sports nutrition formulations for professional muscular development; weight loss and sports nutrition performance enhancing supplements for fitness enthusiasts; sports nutrition and general wellness formulations with an emphasis on natural, vegan, and organic ingredients; and men's health and weight loss formulations, as well as other diet, health, and sports nutrition supplements and related products; and sports nutritional products, meal replacement, and energy and weight loss products. It markets its products under the brand names of NDS Nutrition, PMD Sports, SirenLabs, CoreActive, Nutrology, Metis Nutrition, iSatori, BioGenetic Laboratories, and Energize through franchised stores, as well as through retail locations, which include specialty, mass, and online. The company was formerly known as Bond Laboratories, Inc. and changed its name to FitLife Brands, Inc. in September 2013. FitLife Brands, Inc. was incorporated in 2005 and is headquartered in Omaha, Nebraska.

About Happiness Development Group

Happiness Development Group Limited engages in the research, development, manufacture, and sale of nutraceutical and dietary supplement products in the People's Republic of China and internationally. The company's product category includes lucidum spore powders, cordyceps mycelia, Ejiao products, American ginseng products, other traditional Chinese herbal and animal extracts, vitamins, minerals, and amino acids. It also offers product marketing and e-commerce agency operation services under the Happy Buy platform to small and middle size businesses; and e-commerce solutions, internet information, and advertising services to the online stores or manufactures. In addition, the company provides secure transaction environment, automobile procurement, and financial services for automobile manufacturers under the Taochejun automobile sales platform. It sells its products through distributors, large-scale chain drugstores, malls, and supermarkets under the Happiness brand. The company was formerly known as Happiness Biotech Group Limited and changed its name to Happiness Development Group Limited in October 2022. Happiness Development Group Limited was founded in 2004 and is headquartered in Nanping, the People's Republic of China.