Estee Lauder Companies, Inc. (The) (EL) versus Energizer Holdings (EPC) Critical Contrast

Estee Lauder Companies, Inc. (The) (NYSE: EL) and Energizer Holdings (NYSE:EPC) are both mid-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.

Volatility and Risk

Estee Lauder Companies, Inc. (The) has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Energizer Holdings has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Dividends

Estee Lauder Companies, Inc. (The) pays an annual dividend of $1.36 per share and has a dividend yield of 1.3%. Energizer Holdings does not pay a dividend. Estee Lauder Companies, Inc. (The) pays out 45.5% of its earnings in the form of a dividend. Estee Lauder Companies, Inc. (The) has raised its dividend for 3 consecutive years.

Profitability

This table compares Estee Lauder Companies, Inc. (The) and Energizer Holdings’ 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%
Energizer Holdings 8.80% 12.71% 5.12%

Insider and Institutional Ownership

55.4% of Estee Lauder Companies, Inc. (The) shares are held by institutional investors. Comparatively, 93.2% of Energizer Holdings shares are held by institutional investors. 17.0% of Estee Lauder Companies, Inc. (The) shares are held by insiders. Comparatively, 0.6% of Energizer Holdings shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Estee Lauder Companies, Inc. (The) 1 4 14 0 2.68
Energizer Holdings 0 4 4 0 2.50

Estee Lauder Companies, Inc. (The) presently has a consensus target price of $100.76, indicating a potential downside of 4.87%. Energizer Holdings has a consensus target price of $86.43, indicating a potential upside of 15.25%. Given Energizer Holdings’ higher possible upside, analysts plainly believe Energizer Holdings is more favorable than Estee Lauder Companies, Inc. (The).

Earnings and Valuation

This table compares Estee Lauder Companies, Inc. (The) and Energizer Holdings’ 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 3.36 $2.35 billion $2.99 35.42
Energizer Holdings $2.34 billion 1.83 $455.30 million $3.55 21.12

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

Summary

Estee Lauder Companies, Inc. (The) beats Energizer Holdings on 12 of the 17 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 Energizer Holdings

Edgewell Personal Care Company is a manufacturer and marketer of personal care products in the wet shave, sun and skin care, feminine care and infant care categories. As of September 30, 2016, the Company had a portfolio of over 25 brands. It manages its business in four segments: Wet Shave, Sun and Skin Care, Feminine Care and All Other. Its Wet shave products are sold under the Schick, Wilkinson Sword, Edge, Skintimate, Shave Guard and Personna brand names. Its Sun and Skin Care products are sold under the Banana Boat, Hawaiian Tropic, Wet Ones and Playtex brand names and offers Wet Ones, portable hand wipes category, and Playtex household gloves, the branded household glove in the United States. Its Feminine Care segment markets its products under the Playtex, Stayfree, Carefree and o.b. brands and markets pads and liners. Its All Other segment includes infant care, pet care and miscellaneous other products.

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