Analyzing Estee Lauder Companies, Inc. (The) (EL) and Herbalife LTD. (HLF)
Estee Lauder Companies, Inc. (The) (NYSE: EL) and Herbalife LTD. (NYSE:HLF) are both mid-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Valuation & Earnings
This table compares Estee Lauder Companies, Inc. (The) and Herbalife LTD.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Estee Lauder Companies, Inc. (The)||$11.82 billion||3.32||$2.31 billion||$3.35||31.79|
|Herbalife LTD.||$4.42 billion||1.46||$727.70 million||$4.76||14.47|
Estee Lauder Companies, Inc. (The) has higher revenue and earnings than Herbalife LTD.. Herbalife LTD. is trading at a lower price-to-earnings ratio than Estee Lauder Companies, Inc. (The), indicating that it is currently the more affordable of the two stocks.
Estee Lauder Companies, Inc. (The) pays an annual dividend of $1.36 per share and has a dividend yield of 1.3%. Herbalife LTD. does not pay a dividend. Estee Lauder Companies, Inc. (The) pays out 40.6% of its earnings in the form of a dividend. Estee Lauder Companies, Inc. (The) has increased its dividend for 3 consecutive years.
This is a summary of current ratings and recommmendations for Estee Lauder Companies, Inc. (The) and Herbalife LTD., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Estee Lauder Companies, Inc. (The)||0||3||16||0||2.84|
Estee Lauder Companies, Inc. (The) presently has a consensus price target of $108.39, suggesting a potential upside of 1.77%. Herbalife LTD. has a consensus price target of $86.33, suggesting a potential upside of 25.32%. Given Herbalife LTD.’s higher possible upside, analysts clearly believe Herbalife LTD. is more favorable than Estee Lauder Companies, Inc. (The).
Volatility & Risk
Estee Lauder Companies, Inc. (The) has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Herbalife LTD. has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.
This table compares Estee Lauder Companies, Inc. (The) and Herbalife LTD.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Estee Lauder Companies, Inc. (The)||10.56%||32.38%||11.90%|
Institutional and Insider Ownership
55.4% of Estee Lauder Companies, Inc. (The) shares are owned by institutional investors. 17.0% of Estee Lauder Companies, Inc. (The) shares are owned by insiders. Comparatively, 5.0% of Herbalife LTD. shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Estee Lauder Companies, Inc. (The) beats Herbalife LTD. on 11 of the 17 factors compared between the two stocks.
Estee Lauder Companies, Inc. (The) Company Profile
The Estee Lauder Companies Inc. manufactures and markets skin care, makeup, fragrance and hair care products. The Company offers products, including skin care, makeup, fragrance, hair care and other. The Company operates in beauty products segment. The Company’s products are sold in over 150 countries and territories under brand names, including Estee Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, Tommy Hilfiger, MAC, Kiton, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin, Tom Ford, Smashbox, Ermenegildo Zegna, AERIN, Tory Burch, RODIN olio lusso, Le Labo, Editions de Parfums Frederic Malle, GLAMGLOW, By Kilian, BECCA and Too Faced. Its skin care products include moisturizers, serums, cleansers, toners, body care, exfoliators, acne and oil correctors, facial masks, cleansing devices and sun care products.
Herbalife LTD. Company Profile
Herbalife Ltd. is a global nutrition company. The Company develops and sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, as well as personal care products. Its operating segments are based on geographical operations in six regions: North America; Mexico; South and Central America; Europe, the Middle East, and Africa (EMEA); Asia Pacific, and China. The Company categorizes its products into five groups: weight management, targeted nutrition, energy, sports and fitness, outer nutrition, and literature, promotional and other. As of December 31, 2016, it marketed and sold approximately 140 products encompassing over 4,700 stock keeping units (SKUs) globally. Its product categories include meal replacement; protein shakes; drink mixes; dietary and nutritional supplements containing herbs, vitamins, minerals and other natural ingredients; facial skin care; body care; hair care products; sales tools, and educational materials.
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