Estee Lauder Companies, Inc. (The) (NYSE: EL) and Revlon (NYSE:REV) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Risk & Volatility

Estee Lauder Companies, Inc. (The) has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Revlon has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Insider & Institutional Ownership

54.7% of Estee Lauder Companies, Inc. (The) shares are owned by institutional investors. Comparatively, 19.2% of Revlon shares are owned by institutional investors. 17.0% of Estee Lauder Companies, Inc. (The) shares are owned by insiders. Comparatively, 78.0% of Revlon shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Estee Lauder Companies, Inc. (The) and Revlon’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Estee Lauder Companies, Inc. (The) $11.58 billion 3.17 $2.35 billion $2.99 33.33
Revlon $2.65 billion 0.36 $293.10 million ($2.20) -8.32

Estee Lauder Companies, Inc. (The) has higher revenue and earnings than Revlon. Revlon 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.

Dividends

Estee Lauder Companies, Inc. (The) pays an annual dividend of $1.36 per share and has a dividend yield of 1.4%. Revlon does not pay a dividend. Estee Lauder Companies, Inc. (The) pays out 45.5% of its earnings in the form of a dividend. Revlon has raised its dividend for 3 consecutive years.

Profitability

This table compares Estee Lauder Companies, Inc. (The) and Revlon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Estee Lauder Companies, Inc. (The) 9.62% 33.40% 12.32%
Revlon -4.35% -3.09% 0.63%

Analyst Ratings

This is a breakdown of current ratings and target prices for Estee Lauder Companies, Inc. (The) and Revlon, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Estee Lauder Companies, Inc. (The) 1 4 13 0 2.67
Revlon 0 0 0 0 N/A

Estee Lauder Companies, Inc. (The) currently has a consensus price target of $99.75, suggesting a potential upside of 0.10%. Given Estee Lauder Companies, Inc. (The)’s higher probable upside, research analysts plainly believe Estee Lauder Companies, Inc. (The) is more favorable than Revlon.

Summary

Estee Lauder Companies, Inc. (The) beats Revlon on 12 of the 16 factors compared between the two stocks.

About Estee Lauder Companies, Inc. (The)

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.

About Revlon

Revlon, Inc. manufactures, markets and sells around the world a range of beauty and personal care products, including color cosmetics, hair color, hair care and hair treatments, as well as beauty tools, men’s grooming products, anti-perspirant deodorants, fragrances, skincare and other beauty care products. The Company operates through four segments: Consumer, which includes cosmetics, hair color and hair care, beauty tools, anti-perspirant deodorants, fragrances and skincare products; Professional, which includes a line of products sold to hair and nail salons, and professional salon distributors, including hair color, shampoos, conditioners, styling products, nail polishes and nail enhancements; Elizabeth Arden, which include Elizabeth Arden, which produces skin care, color cosmetics and fragrances under the Elizabeth Arden brand and Other, which includes the distribution of prestige, designer and celebrity fragrances, cosmetics and skincare products.

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