Estée Lauder Companies vs Christian Dior Which Outperforms?

Estée Lauder Companies and Christian Dior are two renowned luxury brands in the beauty and fashion industries. Both companies have established strong footholds in the global market, with Estée Lauder being a leading player in skincare, makeup, and fragrance, while Christian Dior is renowned for its haute couture fashion and cosmetics. Investors looking to capitalize on the success of these iconic brands may consider comparing the performance of their stocks to make informed investment decisions.

Estée Lauder Companies or Christian Dior?

When comparing Estée Lauder Companies and Christian Dior, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Estée Lauder Companies and Christian Dior.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Estée Lauder Companies has a dividend yield of 2.91%, while Christian Dior has a dividend yield of 1.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Estée Lauder Companies reports a 5-year dividend growth of 10.95% year and a payout ratio of 468.47%. On the other hand, Christian Dior reports a 5-year dividend growth of 3.43% year and a payout ratio of 40.33%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Estée Lauder Companies P/E ratio at 141.79 and Christian Dior's P/E ratio at 4.84. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Estée Lauder Companies P/B ratio is 5.66 while Christian Dior's P/B ratio is 1.22.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Estée Lauder Companies has seen a 5-year revenue growth of 0.20%, while Christian Dior's is 6.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Estée Lauder Companies's ROE at 3.72% and Christian Dior's ROE at 26.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $79.17 for Estée Lauder Companies and $163.94 for Christian Dior. Over the past year, Estée Lauder Companies's prices ranged from $62.29 to $159.75, with a yearly change of 156.46%. Christian Dior's prices fluctuated between $136.50 and $232.03, with a yearly change of 69.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.