The Estee Lauder Companies Inc. (EL) vs e.l.f. Beauty (ELF)

The Estee Lauder Companies Inc. and e.l.f. Beauty are both Household & Personal Products companies. The Estee Lauder Companies Inc. is the larger, with a market value of $39.0B against $6.5B — 6.0× the size. e.l.f. Beauty trades at the lower P/E: 76.1× against 106×. e.l.f. Beauty grew revenue faster over the last twelve months: 39.9% against 5.79%. e.l.f. Beauty has the higher net margin (4.47% vs 2.41%) and the lower return on invested capital (6.44% vs 7.87%). Across the 22 metrics below, e.l.f. Beauty leads on 14 and The Estee Lauder Companies Inc. on 8.

Valuation

Metric EL ELF Household & Personal Products median
P/E 106.19 76.12 25.45
P/S 2.58 3.38 1.17
P/B 9.76 5.35 2.43
Price to free cash flow 25.80 23.80 20.67
EV/EBITDA 24.06 31.90 13.40
EV/Sales 2.84 3.64 1.24
Earnings yield 0.94% 1.31% 1.13%
Free cash flow yield 3.88% 4.20% 3.81%

Profitability

Metric EL ELF Household & Personal Products median
Gross margin 76.04% 74.42% 46.90%
Operating margin 6.67% 8.87% 1.31%
Net margin 2.41% 4.47% 2.32%
Free cash flow margin 9.99% 14.22% 4.87%
Return on equity 9.28% 7.33% 4.67%
Return on assets 1.87% 3.55% 0.00%
Return on invested capital 7.87% 6.44% 0.57%

Growth

Metric EL ELF Household & Personal Products median
Revenue growth (TTM) 5.79% 39.93% 2.91%
EPS growth (last fiscal year) 115.87% (77.08%) (5.01%)
Revenue growth, 5-year CAGR (1.48%) 38.76% 1.39%
Net income growth, 5-year CAGR (42.40%) 33.39% 0.00%

Health

Metric EL ELF Household & Personal Products median
Debt to equity 1.80 0.65 0.44
Current ratio 1.25 2.57 1.75
Net debt to EBITDA 2.42 3.73 1.37

Dividend

Metric EL ELF Household & Personal Products median
Dividend yield 1.29% — 2.48%
Payout ratio 1.41 — 0.74

Size

Metric EL ELF Household & Personal Products median
Market cap 39.00b 6.48b 671.37m

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