The Estee Lauder Companies Inc. (EL) and Its Peers Financial Results Comparison

The Estee Lauder Companies Inc. (NYSE:EL) is a company in the Personal Products industry and that’s how we contrast it to its competitors. The contrasting will be based on the risk, analyst recommendations, profitability, dividends, earnings and valuation, institutional ownership.

Insider and Institutional Ownership

The Estee Lauder Companies Inc. has 93.1% of its shares owned by institutional investors vs. an average of 52.46% institutional ownership for its competitors. 0.3% of The Estee Lauder Companies Inc. shares are owned by company insiders. Comparatively, 5.46% of all Personal Products companies shares are owned by company insiders.

Profitability

Table 1 has The Estee Lauder Companies Inc. and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Estee Lauder Companies Inc. 11.49% 36.00% 12.90%
Industry Average 5.33% 38.00% 11.00%

Earnings & Valuation

In next table we are contrasting The Estee Lauder Companies Inc. and its competitors’ valuation, net income and top-line revenue.

Net Income Gross Revenue Price/Earnings Ratio
The Estee Lauder Companies Inc. 1.63B 14.19B 34.46
Industry Average 893.93M 16.77B 36.17

The Estee Lauder Companies Inc. has lower revenue and P/E Ratio than its competitors. The business has a lower P/E ratio which is presently more affordable in contrast to its competitors.

Analyst Recommendations

Table 3 provides summary of current ratings for The Estee Lauder Companies Inc. and its competitors.

Sell Ratings Hold Ratings Buy Ratings Rating Score
The Estee Lauder Companies Inc. 1 3 7 2.64
Industry Average 1.67 3.08 2.31 2.42

The Estee Lauder Companies Inc. presently has an average target price of $157.6, suggesting a potential downside of -3.16%. The potential upside of the competitors is 68.98%. The research analysts’ belief based on the results shown earlier is that The Estee Lauder Companies Inc.’s competitors are looking more favorable than the company itself.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of The Estee Lauder Companies Inc. and its competitors.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
The Estee Lauder Companies Inc. -0.62% 14.57% 11.48% 11.34% 12.81% 20.13%
Industry Average 1.42% 10.08% 13.26% 17.21% 41.23% 19.56%

For the past year The Estee Lauder Companies Inc. was more bullish than its competitors.

Liquidity

The Estee Lauder Companies Inc. has a Current Ratio of 1.7 and a Quick Ratio of 1.3. Competitively, The Estee Lauder Companies Inc.’s competitors Current Ratio is 2.22 and has 1.69 Quick Ratio. The Estee Lauder Companies Inc.’s rivals have better ability to pay short and long-term obligations than The Estee Lauder Companies Inc.

Volatility and Risk

A beta of 0.71 shows that The Estee Lauder Companies Inc. is 29.00% less volatile than Standard & Poor’s 500. Competitively, The Estee Lauder Companies Inc.’s competitors are 17.30% less volatile than Standard & Poor’s 500, because of the 0.83 beta.

Dividends

$1.57 per share with a dividend yield of 0.98% is the annual dividend that The Estee Lauder Companies Inc. pays. On the other side The Estee Lauder Companies Inc.’s competitors have dividend yield of 4.03%.

Summary

The Estee Lauder Companies Inc.’s rivals show that they’re better in 6 of the 7 indicators compared to the company itself.

The Estée Lauder Companies Inc. manufactures and markets skin care, makeup, fragrance, and hair care products worldwide. The company offers a range of skin care products, such as moisturizers, serums, cleansers, toners, body care, exfoliators, acne and oil correctors, facial masks, cleansing devices, and sun care products; and makeup products for face, eyes, lips, and nails, as well as related items, including compacts, brushes, and other makeup tools. It also provides fragrance products in various forms comprising eau de parfum sprays and colognes, lotions, powders, creams, bath/shower products, candles, and soaps; and hair care products consisting of shampoos, conditioners, styling products, treatment, finishing sprays, and hair color products, as well as sells ancillary products and services. The company offers its products under the brands of Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, M·A·C, Bobbi Brown, La Mer, Aveda, Jo Malone London, Bumble and bumble, Darphin, Ojon, Smashbox, RODIN olio lusso, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, By Kilian, BECCA, Too Faced, GoodSkin Labs, and Osiao. In addition, it operates as a licensee for fragrances and/or cosmetics sold under the Tommy Hilfiger, Donna Karan New York, DKNY, Kiton, Michael Kors, Tom Ford, Dr. Andrew Weil, Ermenegildo Zegna, AERIN, and Tory Burch brand names. The company sells its products through department stores, specialty multi-brand retailers, upscale perfumeries, pharmacies, and salons and spas; freestanding stores; e-commerce Websites; stores in airports and on cruise ships; in-flight and duty-free shops; and self-select outlets. The Estée Lauder Companies Inc. was founded in 1946 and is based in New York, New York.