Analyzing Estee Lauder Companies (NYSE:EL) and ODDITY Tech (NASDAQ:ODD)

Estee Lauder Companies (NYSE:EL) and ODDITY Tech (NASDAQ:ODD) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Insider & Institutional Ownership

55.1% of Estee Lauder Companies shares are held by institutional investors. Comparatively, 35.9% of ODDITY Tech shares are held by institutional investors. 11.5% of Estee Lauder Companies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Estee Lauder Companies and ODDITY Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Estee Lauder Companies	2.41%	26.99%	5.42%
ODDITY Tech	2.23%	2.58%	0.80%

Earnings & Valuation

This table compares Estee Lauder Companies and ODDITY Tech”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Estee Lauder Companies	$15.05 billion	2.67	$182.00 million	$1.00	111.02
ODDITY Tech	$679.09 million	1.49	$110.75 million	$0.24	73.15

Estee Lauder Companies has higher revenue and earnings than ODDITY Tech. ODDITY Tech is trading at a lower price-to-earnings ratio than Estee Lauder Companies, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Estee Lauder Companies and ODDITY Tech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Estee Lauder Companies	1	14	11	2	2.50
ODDITY Tech	3	10	0	1	1.93

Estee Lauder Companies presently has a consensus price target of $110.73, indicating a potential downside of 0.26%. ODDITY Tech has a consensus price target of $22.75, indicating a potential upside of 29.59%. Given ODDITY Tech’s higher possible upside, analysts plainly believe ODDITY Tech is more favorable than Estee Lauder Companies.

Risk & Volatility

Estee Lauder Companies has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, ODDITY Tech has a beta of 2.14, indicating that its share price is 114% more volatile than the S&P 500.

Summary

Estee Lauder Companies beats ODDITY Tech on 13 of the 15 factors compared between the two stocks.

About Estee Lauder Companies

The Estée Lauder Companies Inc. is a global prestige beauty company founded in 1946 by Estée and Joseph Lauder. Based in New York City, it develops, markets and sells beauty products under a portfolio of brands, including Estée Lauder, Clinique, M·A·C, La Mer, Aveda and Jo Malone London. The company’s products span skin care, makeup, fragrance and hair care. It reaches consumers through department stores, specialty retailers, its own stores and websites, and other online and travel-retail channels.

About ODDITY Tech

ODDITY Tech Ltd. is a technology-driven consumer company that develops and operates digital-first beauty and wellness brands. Its portfolio includes IL MAKIAGE, which offers makeup and skincare products, and SpoiledChild, which focuses on beauty and wellness products. The company uses data analytics, artificial intelligence and other technology to support product development, personalized recommendations and online shopping. Its brands primarily sell directly to consumers through e-commerce platforms.