Estee Lauder Companies, Inc. (The) (NYSE: EL) is one of 33 publicly-traded companies in the “Personal Products” industry, but how does it weigh in compared to its peers? We will compare Estee Lauder Companies, Inc. (The) to similar companies based on the strength of its profitability, earnings, dividends, institutional ownership, analyst recommendations, risk and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for Estee Lauder Companies, Inc. (The) and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Estee Lauder Companies, Inc. (The) 0 5 17 0 2.77
Estee Lauder Companies, Inc. (The) Competitors 350 1209 1486 23 2.39

Estee Lauder Companies, Inc. (The) presently has a consensus target price of $111.86, indicating a potential upside of 2.16%. As a group, “Personal Products” companies have a potential upside of 5.29%. Given Estee Lauder Companies, Inc. (The)’s peers higher possible upside, analysts clearly believe Estee Lauder Companies, Inc. (The) has less favorable growth aspects than its peers.

Profitability

This table compares Estee Lauder Companies, Inc. (The) and its peers’ 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%
Estee Lauder Companies, Inc. (The) Competitors -46.56% 137.98% 5.38%

Dividends

Estee Lauder Companies, Inc. (The) pays an annual dividend of $1.36 per share and has a dividend yield of 1.2%. Estee Lauder Companies, Inc. (The) pays out 40.6% of its earnings in the form of a dividend. As a group, “Personal Products” companies pay a dividend yield of 1.9% and pay out 46.2% of their earnings in the form of a dividend. Estee Lauder Companies, Inc. (The) has increased its dividend for 3 consecutive years.

Risk and Volatility

Estee Lauder Companies, Inc. (The) has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Estee Lauder Companies, Inc. (The)’s peers have a beta of 1.09, meaning that their average stock price is 9% more volatile than the S&P 500.

Institutional and Insider Ownership

54.6% of Estee Lauder Companies, Inc. (The) shares are owned by institutional investors. Comparatively, 57.5% of shares of all “Personal Products” companies are owned by institutional investors. 16.2% of Estee Lauder Companies, Inc. (The) shares are owned by company insiders. Comparatively, 15.3% of shares of all “Personal Products” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Estee Lauder Companies, Inc. (The) and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Estee Lauder Companies, Inc. (The) $11.82 billion $2.35 billion 32.68
Estee Lauder Companies, Inc. (The) Competitors $14.48 billion $2.96 billion 14.45

Estee Lauder Companies, Inc. (The)’s peers have higher revenue and earnings than Estee Lauder Companies, Inc. (The). Estee Lauder Companies, Inc. (The) is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Estee Lauder Companies, Inc. (The) peers beat Estee Lauder Companies, Inc. (The) on 8 of the 15 factors compared.

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.

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