Estee Lauder Companies (NYSE:EL – Get Free Report) and Pitanium (NASDAQ:PTNM – Get Free Report) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Insider and Institutional Ownership
55.2% of Estee Lauder Companies shares are held by institutional investors. 13.1% of Estee Lauder Companies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Estee Lauder Companies and Pitanium’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Estee Lauder Companies | -6.44% | 14.92% | 3.08% |
| Pitanium | N/A | N/A | N/A |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Estee Lauder Companies | 3 | 10 | 10 | 3 | 2.50 |
| Pitanium | 1 | 0 | 0 | 0 | 1.00 |
Estee Lauder Companies currently has a consensus target price of $100.50, suggesting a potential downside of 12.75%. Given Estee Lauder Companies’ stronger consensus rating and higher possible upside, research analysts clearly believe Estee Lauder Companies is more favorable than Pitanium.
Earnings & Valuation
This table compares Estee Lauder Companies and Pitanium”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Estee Lauder Companies | $14.33 billion | 2.90 | -$1.13 billion | ($2.58) | -44.64 |
| Pitanium | N/A | N/A | N/A | N/A | N/A |
Pitanium has lower revenue, but higher earnings than Estee Lauder Companies.
Summary
Estee Lauder Companies beats Pitanium on 9 of the 10 factors compared between the two stocks.
About Estee Lauder Companies
The Estée Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, serums, cleansers, toners, body care, exfoliators, acne care and oil correctors, facial masks, and sun care products; and makeup products, such as lipsticks, lip glosses, mascaras, foundations, eyeshadows, and powders, as well as compacts, brushes, and other makeup tools. The company also provides fragrance products in various forms comprising eau de parfum sprays and colognes, as well as lotions, powders, creams, candles, and soaps; and hair care products, including shampoos, conditioners, styling products, treatment, finishing sprays, and hair color products, as well as sells ancillary products and services. It offers its products under the Estée Lauder, Clinique, Origins, M·A·C, Bobbi Brown Cosmetics, La Mer, Aveda, Jo Malone London, TOM FORD, Too Faced, Dr.Jart+, and The Ordinary brands. The company sells its products through department stores, specialty-multi retailers, upscale perfumeries and pharmacies, and salons and spas; freestanding stores; its own and authorized retailer websites; third-party online malls; stores in airports; and duty-free locations. The Estée Lauder Companies Inc. was founded in 1946 and is headquartered in New York, New York.
About Pitanium
Our Operating Subsidiary is a retailer in Hong Kong focusing on the sale of its proprietary brand products, namely PITANIUM and BIG PI online. It also generates revenue from the offline sale at six retail stores situated in Hong Kong’s premier shopping destinations. This positioning not only enhances the brand’s visibility but also aligns it with the discerning tastes of its target demographic. The brand “PITANIUM” was launched in 2019 and began by offering high-end skincare and haircare solutions to spas in Hong Kong. These brand products were later offered for sale to retail customers in our online shop, which allows customers to enjoy the use of professional skincare and personal care products in the comfort of their homes, thereby promoting their health and well-being. The brand “BIG PI” was launched in 2023 and offers whole sets of products to its retail customers using different product formulas. Our Operating Subsidiary emphasizes product design and development with an in-house product development team working closely with its original equipment manufacturing (“OEM”) and original design manufacturing (“ODM”) suppliers. It takes a proactive approach in expanding its product portfolio with a view to staying ahead of market trends and showcasing its ability to cater to the evolving needs of its customers. Our Operating Subsidiary hosts and manages an online shop “www.pitanium.com” to display its best-selling products and latest marketing and promotional initiatives on its home page. Our Operating Subsidiary regularly updates its online shop to keep customers updated about its product offerings. Meanwhile, our Operating Subsidiary is operating six retail stores in Hong Kong. Our principal executive office is located Kowloon, Hong Kong.
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