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 $34.6B against $5.9B — 5.9× the size. e.l.f. Beauty trades at the lower P/E: 99.5× against 185×. e.l.f. Beauty grew revenue faster over the last twelve months: 31.2% against 5.05%. e.l.f. Beauty has the higher net margin (3.38% vs 1.21%) and the lower return on invested capital (4.72% vs 6.40%). Across the 22 metrics below, e.l.f. Beauty leads on 15 and The Estee Lauder Companies Inc. on 7.

Valuation

Metric EL ELF Household & Personal Products median
P/E 185.24 99.51 22.55
P/S 2.27 3.34 1.13
P/B 8.99 5.04 3.02
Price to free cash flow 25.81 21.01 17.73
EV/EBITDA 24.13 28.91 12.27
EV/Sales 2.53 3.63 1.26
Earnings yield 0.54% 1.00% 0.27%
Free cash flow yield 3.87% 4.76% 4.03%

Profitability

Metric EL ELF Household & Personal Products median
Gross margin 75.50% 74.44% 46.28%
Operating margin 5.18% 7.23% 0.79%
Net margin 1.21% 3.38% 0.61%
Free cash flow margin 8.81% 15.90% 2.89%
Return on equity 4.75% 6.04% 2.12%
Return on assets 0.92% 3.16% 0.00%
Return on invested capital 6.40% 4.72% 0.00%

Growth

Metric EL ELF Household & Personal Products median
Revenue growth (TTM) 5.05% 31.23% 2.93%
EPS growth (last fiscal year) 115.87% (77.08%) —
Revenue growth, 5-year CAGR (1.48%) 38.76% 2.03%
Net income growth, 5-year CAGR (42.40%) 33.39% 0.00%

Health

Metric EL ELF Household & Personal Products median
Debt to equity 1.92 0.74 0.46
Current ratio 1.22 2.55 1.64
Net debt to EBITDA 2.42 3.73 1.37

Dividend

Metric EL ELF Household & Personal Products median
Dividend yield 1.89% — 1.96%
Payout ratio 0.92 0.00 0.49

Size

Metric EL ELF Household & Personal Products median
Market cap 34.58b 5.90b 625.04m

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