The Estee Lauder Companies Inc. (EL) vs Kenvue Inc. (KVUE)

The Estee Lauder Companies Inc. and Kenvue Inc. are both Household & Personal Products companies. The Estee Lauder Companies Inc. and Kenvue Inc. are of similar size ($34.6B and $33.8B). Kenvue Inc. trades at the lower P/E: 20.5× against 185×. The Estee Lauder Companies Inc. grew revenue faster over the last twelve months: 5.05% against 1.76%. Kenvue Inc. has the higher net margin (10.8% vs 1.21%) and the higher return on invested capital (9.95% vs 6.40%). Both pay a dividend; The Estee Lauder Companies Inc. yields more (1.89% vs 1.65%). Across the 23 metrics below, Kenvue Inc. leads on 17 and The Estee Lauder Companies Inc. on 6.

Valuation

Metric EL KVUE Household & Personal Products median
P/E 185.24 20.46 22.55
P/S 2.27 2.22 1.13
P/B 8.99 3.24 3.02
Price to free cash flow 25.81 17.63 17.73
EV/EBITDA 24.13 12.56 12.27
EV/Sales 2.53 2.61 1.26
Earnings yield 0.54% 4.89% 0.27%
Free cash flow yield 3.87% 5.67% 4.03%

Profitability

Metric EL KVUE Household & Personal Products median
Gross margin 75.50% 58.19% 46.28%
Operating margin 5.18% 17.07% 0.79%
Net margin 1.21% 10.76% 0.61%
Free cash flow margin 8.81% 12.58% 2.89%
Return on equity 4.75% 15.58% 2.12%
Return on assets 0.92% 6.16% 0.00%
Return on invested capital 6.40% 9.95% 0.00%

Growth

Metric EL KVUE Household & Personal Products median
Revenue growth (TTM) 5.05% 1.76% 2.93%
EPS growth (last fiscal year) 115.87% 40.74% —
Revenue growth, 5-year CAGR (1.48%) 0.89% 2.03%
Net income growth, 5-year CAGR (42.40%) 0.00% 0.00%

Health

Metric EL KVUE Household & Personal Products median
Debt to equity 1.92 0.67 0.46
Current ratio 1.22 1.01 1.64
Net debt to EBITDA 2.42 2.02 1.37

Dividend

Metric EL KVUE Household & Personal Products median
Dividend yield 1.89% 1.65% 1.96%
Payout ratio 0.92 — 0.49

Size

Metric EL KVUE Household & Personal Products median
Market cap 34.58b 33.82b 625.04m

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