Colgate-Palmolive Company (CL) vs The Estee Lauder Companies Inc. (EL)

Colgate-Palmolive Company and The Estee Lauder Companies Inc. are both Household & Personal Products companies. Colgate-Palmolive Company is the larger, with a market value of $68.3B against $34.6B — 2.0× the size. Colgate-Palmolive Company trades at the lower P/E: 33.9× against 185×. Colgate-Palmolive Company grew revenue faster over the last twelve months: 5.24% against 5.05%. Colgate-Palmolive Company has the higher net margin (9.68% vs 1.21%) and the higher return on invested capital (27.7% vs 6.40%). Both pay a dividend; Colgate-Palmolive Company yields more (2.41% vs 1.89%). Across the 23 metrics below, Colgate-Palmolive Company leads on 16 and The Estee Lauder Companies Inc. on 7.

Valuation

Metric CL EL Household & Personal Products median
P/E 33.88 185.24 22.55
P/S 3.27 2.27 1.13
P/B 121.55 8.99 3.02
Price to free cash flow 17.83 25.81 17.73
EV/EBITDA 16.05 24.13 12.27
EV/Sales 3.58 2.53 1.26
Earnings yield 2.95% 0.54% 0.27%
Free cash flow yield 5.61% 3.87% 4.03%

Profitability

Metric CL EL Household & Personal Products median
Gross margin 60.42% 75.50% 46.28%
Operating margin 14.87% 5.18% 0.79%
Net margin 9.68% 1.21% 0.61%
Free cash flow margin 18.33% 8.81% 2.89%
Return on equity 251.92% 4.75% 2.12%
Return on assets 11.90% 0.92% 0.00%
Return on invested capital 27.74% 6.40% 0.00%

Growth

Metric CL EL Household & Personal Products median
Revenue growth (TTM) 5.24% 5.05% 2.93%
EPS growth (last fiscal year) (25.07%) 115.87% —
Revenue growth, 5-year CAGR 4.35% (1.48%) 2.03%
Net income growth, 5-year CAGR (4.58%) (42.40%) 0.00%

Health

Metric CL EL Household & Personal Products median
Debt to equity 13.88 1.92 0.46
Current ratio 1.03 1.22 1.64
Net debt to EBITDA 1.38 2.42 1.37

Dividend

Metric CL EL Household & Personal Products median
Dividend yield 2.41% 1.89% 1.96%
Payout ratio 1.06 0.92 0.49

Size

Metric CL EL Household & Personal Products median
Market cap 68.32b 34.58b 625.04m

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