The Estee Lauder Companies Inc. (EL) vs Procter & Gamble Company (The) (PG)

The Estee Lauder Companies Inc. and Procter & Gamble Company (The) are both Household & Personal Products companies. Procter & Gamble Company (The) is the larger, with a market value of $387.3B against $39.0B — 9.9× the size. Procter & Gamble Company (The) trades at the lower P/E: 24.7× against 106×. The Estee Lauder Companies Inc. grew revenue faster over the last twelve months: 5.79% against 3.52%. Procter & Gamble Company (The) has the higher net margin (18.1% vs 2.41%) and the higher return on invested capital (15.7% vs 7.87%). Both pay a dividend; Procter & Gamble Company (The) yields more (2.59% vs 1.29%). Across the 23 metrics below, Procter & Gamble Company (The) leads on 17 and The Estee Lauder Companies Inc. on 6.

Valuation

Metric EL PG Household & Personal Products median
P/E 106.19 24.72 25.45
P/S 2.58 4.42 1.17
P/B 9.76 7.11 2.43
Price to free cash flow 25.80 24.47 20.67
EV/EBITDA 24.06 17.88 13.40
EV/Sales 2.84 4.68 1.24
Earnings yield 0.94% 4.05% 1.13%
Free cash flow yield 3.88% 4.09% 3.81%

Profitability

Metric EL PG Household & Personal Products median
Gross margin 76.04% 49.78% 46.90%
Operating margin 6.67% 22.55% 1.31%
Net margin 2.41% 18.14% 2.32%
Free cash flow margin 9.99% 18.05% 4.87%
Return on equity 9.28% 29.71% 4.67%
Return on assets 1.87% 12.24% 0.00%
Return on invested capital 7.87% 15.71% 0.57%

Growth

Metric EL PG Household & Personal Products median
Revenue growth (TTM) 5.79% 3.52% 2.91%
EPS growth (last fiscal year) 115.87% 1.69% (5.01%)
Revenue growth, 5-year CAGR (1.48%) 2.72% 1.39%
Net income growth, 5-year CAGR (42.40%) 2.34% 0.00%

Health

Metric EL PG Household & Personal Products median
Debt to equity 1.80 0.70 0.44
Current ratio 1.25 0.72 1.75
Net debt to EBITDA 2.42 1.06 1.37

Dividend

Metric EL PG Household & Personal Products median
Dividend yield 1.29% 2.59% 2.48%
Payout ratio 1.41 0.66 0.74

Size

Metric EL PG Household & Personal Products median
Market cap 39.00b 387.30b 671.37m

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