Estée Lauder Companies vs Shiseido Which Is a Better Investment?

Estée Lauder Companies and Shiseido are both globally recognized beauty and cosmetics companies that have a strong presence in the market. Both companies have shown steady growth and profitability over the years, with Estée Lauder focusing on luxury brands and Shiseido targeting a more diverse range of consumers. Investors may be interested in comparing the stocks of these two companies to determine which one offers a better investment opportunity based on factors such as financial performance, brand strength, and market potential.

Estée Lauder Companies or Shiseido?

When comparing Estée Lauder Companies and Shiseido, 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 Shiseido.

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 Shiseido has a dividend yield of 1.92%. 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, Shiseido reports a 5-year dividend growth of -6.34% year and a payout ratio of 239.51%.

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 Shiseido's P/E ratio at 112.87. 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 Shiseido's P/B ratio is 1.71.

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 Shiseido's is -0.11%. 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 Shiseido's ROE at 1.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $79.17 for Estée Lauder Companies and $18.28 for Shiseido. Over the past year, Estée Lauder Companies's prices ranged from $62.29 to $159.75, with a yearly change of 156.46%. Shiseido's prices fluctuated between $16.85 and $33.88, with a yearly change of 101.07%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.