e.l.f. Beauty (ELF) vs Newell Brands Inc. (NWL)

e.l.f. Beauty and Newell Brands Inc. are both Household & Personal Products companies. e.l.f. Beauty is the larger, with a market value of $5.9B against $2.4B — 2.5× the size. Newell Brands Inc. 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 −2.04%. e.l.f. Beauty has the higher net margin (3.38% vs −3.05%) and the higher return on invested capital (4.72% vs 1.41%). Across the 21 metrics below, e.l.f. Beauty leads on 14 and Newell Brands Inc. on 7.

Valuation

Metric ELF NWL Household & Personal Products median
P/E 99.51 n/m 22.55
P/S 3.34 0.32 1.13
P/B 5.04 0.94 3.02
Price to free cash flow 21.01 19.57 17.73
EV/EBITDA 28.91 8.62 12.27
EV/Sales 3.63 0.98 1.26
Earnings yield 1.00% (9.76%) 0.27%
Free cash flow yield 4.76% 5.11% 4.03%

Profitability

Metric ELF NWL Household & Personal Products median
Gross margin 74.44% 35.45% 46.28%
Operating margin 7.23% 2.26% 0.79%
Net margin 3.38% (3.05%) 0.61%
Free cash flow margin 15.90% 1.63% 2.89%
Return on equity 6.04% (8.59%) 2.12%
Return on assets 3.16% (1.96%) 0.00%
Return on invested capital 4.72% 1.41% 0.00%

Growth

Metric ELF NWL Household & Personal Products median
Revenue growth (TTM) 31.23% (2.04%) 2.93%
EPS growth (last fiscal year) (77.08%) (30.77%) —
Revenue growth, 5-year CAGR 38.76% (5.15%) 2.03%
Net income growth, 5-year CAGR 33.39% 0.00% 0.00%

Health

Metric ELF NWL Household & Personal Products median
Debt to equity 0.74 2.04 0.46
Current ratio 2.55 1.11 1.64
Net debt to EBITDA 3.73 6.42 1.37

Dividend

Metric ELF NWL Household & Personal Products median
Dividend yield — 5.61% 1.96%
Payout ratio 0.00 0.68 0.49

Size

Metric ELF NWL Household & Personal Products median
Market cap 5.90b 2.38b 625.04m

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