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Colgate-Palmolive (CL) & Estee Lauder Companies, Inc. (The) (NYSE:EL) Head to Head Review

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

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

Net Margins Return on Equity Return on Assets
Colgate-Palmolive 15.83% 3,121.95% 20.57%
Estee Lauder Companies, Inc. (The) 9.62% 33.40% 12.32%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Colgate-Palmolive and Estee Lauder Companies, Inc. (The), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Colgate-Palmolive 0 10 2 0 2.17
Estee Lauder Companies, Inc. (The) 1 4 13 0 2.67

Colgate-Palmolive currently has a consensus price target of £74.80, indicating a potential upside of 4.27%. Estee Lauder Companies, Inc. (The) has a consensus price target of £98.25, indicating a potential downside of 2.27%. Given Colgate-Palmolive’s higher probable upside, equities analysts clearly believe Colgate-Palmolive is more favorable than Estee Lauder Companies, Inc. (The).

Earnings and Valuation This table compares Colgate-Palmolive and Estee Lauder Companies, Inc. (The)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Colgate-Palmolive £15.18 billion 4.16 £4.42 billion £2.69 26.67
Estee Lauder Companies, Inc. (The) £11.58 billion 3.19 £2.35 billion £2.99 33.62

Colgate-Palmolive has higher revenue and earnings than Estee Lauder Companies, Inc. (The). Colgate-Palmolive 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.

Insider & Institutional Ownership

73.9% of Colgate-Palmolive shares are held by institutional investors. Comparatively, 54.7% of Estee Lauder Companies, Inc. (The) shares are held by institutional investors.

1.0% of Colgate-Palmolive shares are held by company insiders. Comparatively, 17.0% of Estee Lauder Companies, Inc. (The) shares are held by company insiders.

Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth. Dividends Colgate-Palmolive pays an annual dividend of £1.60 per share and has a dividend yield of 2.2%.

Estee Lauder Companies, Inc. (The) pays an annual dividend of £1.36 per share and has a dividend yield of 1.4%. Colgate-Palmolive pays out 59.5% of its earnings in the form of a dividend. Estee Lauder Companies, Inc. (The) pays out 45.5% of its earnings in the form of a dividend.

Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Colgate-Palmolive has increased its dividend for 3 consecutive years and Estee Lauder Companies, Inc. (The) has increased its dividend for 53 consecutive years. Risk & Volatility

Colgate-Palmolive has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, 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. Summary

Colgate-Palmolive beats Estee Lauder Companies, Inc. (The) on 10 of the 17 factors compared between the two stocks. About Colgate-Palmolive Colgate-Palmolive logoColgate-Palmolive Company (Colgate) is a consumer products company.

The Company operates in two product segments: Oral, Personal and Home Care, and Pet Nutrition. The Oral, Personal and Home Care product segment is operated through five geographic segments, which include North America, Latin America, Europe, Asia Pacific and Africa/Eurasia. The Company’s oral care products include Colgate Total, Colgate Sensitive Pro-Relief, Colgate Max Fresh and Colgate Optic White.

The Company is also engaged in various product categories of the personal care market with operations in liquid hand soap, which it sells under the Palmolive, Protex and Softsoap brands. The Company manufactures and markets a range of products for the home care market, including Palmolive and Ajax dishwashing liquids, Fabuloso and Ajax household cleaners and Murphy’s Oil Soap. The Company, through its Hill’s Pet Nutrition segment (Hill’s), manufactures pet nutrition products for dogs and cats.

About Estee Lauder Companies, Inc. (The) Estee Lauder Companies, Inc. (The) logoThe 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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References

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