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 $73.9B against $38.8B — 1.9× the size. Colgate-Palmolive Company trades at the lower P/E: 37.1× against 205×. 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 (2.79% vs 1.34%). 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 37.05 204.98 23.53
P/S 3.57 2.52 1.58
P/B 132.92 9.95 3.36
Price to free cash flow 19.50 28.56 19.95
EV/EBITDA 17.42 26.45 13.02
EV/Sales 3.88 2.77 1.42
Earnings yield 2.70% 0.49% 0.25%
Free cash flow yield 5.13% 3.50% 3.66%

Profitability

Metric CL EL Household & Personal Products median
Gross margin 60.42% 75.50% 47.14%
Operating margin 14.87% 5.18% 1.31%
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% 0.24%

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% (12.73%)
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 1.59
Net debt to EBITDA 1.38 2.42 1.37

Dividend

Metric CL EL Household & Personal Products median
Dividend yield 2.79% 1.34% 2.79%
Payout ratio 1.04 2.86 0.87

Size

Metric CL EL Household & Personal Products median
Market cap 73.87b 38.84b 620.01m

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