Coty (COTY) vs e.l.f. Beauty (ELF)

Coty and e.l.f. Beauty are both Household & Personal Products companies. e.l.f. Beauty is the larger, with a market value of $5.9B against $2.3B — 2.5× the size. Coty has negative trailing earnings, so its P/E is not meaningful; e.l.f. Beauty trades at 99.5×. e.l.f. Beauty grew revenue faster over the last twelve months: 31.2% against −1.46%. e.l.f. Beauty has the higher net margin (3.38% vs −10.6%) and the higher return on invested capital (4.72% vs −0.85%). Across the 20 metrics below, e.l.f. Beauty leads on 15 and Coty on 5.

Valuation

Metric COTY ELF Household & Personal Products median
P/E n/m 99.51 22.55
P/S 0.40 3.34 1.13
P/B 0.74 5.04 3.02
Price to free cash flow n/m 21.01 17.73
EV/EBITDA 12.94 28.91 12.27
EV/Sales 0.89 3.63 1.26
Earnings yield (26.42%) 1.00% 0.27%
Free cash flow yield (1.34%) 4.76% 4.03%

Profitability

Metric COTY ELF Household & Personal Products median
Gross margin 62.89% 74.44% 46.28%
Operating margin (1.40%) 7.23% 0.79%
Net margin (10.64%) 3.38% 0.61%
Free cash flow margin (0.54%) 15.90% 2.89%
Return on equity (17.96%) 6.04% 2.12%
Return on assets (5.59%) 3.16% 0.00%
Return on invested capital (0.85%) 4.72% 0.00%

Growth

Metric COTY ELF Household & Personal Products median
Revenue growth (TTM) (1.46%) 31.23% 2.93%
EPS growth (last fiscal year) (59.09%) (77.08%) —
Revenue growth, 5-year CAGR 4.63% 38.76% 2.03%
Net income growth, 5-year CAGR 0.00% 33.39% 0.00%

Health

Metric COTY ELF Household & Personal Products median
Debt to equity 0.96 0.74 0.46
Current ratio 0.75 2.55 1.64
Net debt to EBITDA 7.13 3.73 1.37

Dividend

Metric COTY ELF Household & Personal Products median
Dividend yield 0.64% — 1.96%
Payout ratio 0.00 0.00 0.49

Size

Metric COTY ELF Household & Personal Products median
Market cap 2.32b 5.90b 625.04m

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