Estée Lauder Companies vs L'Oréal Which Is More Profitable?

Estée Lauder Companies and L'Oréal are two powerhouse companies in the beauty and cosmetics industry. Both are well-established, globally recognized brands known for their high-quality products and innovative marketing strategies. Investors closely follow their stocks in the hopes of capitalizing on their growth and success. While Estée Lauder Companies has a strong presence in the luxury market, L'Oréal appeals to a wider range of consumers with its diverse product offerings. In this comparison of their stocks, we will analyze their financial performance, market trends, and potential for future growth.

Estée Lauder Companies or L'Oréal?

When comparing Estée Lauder Companies and L'Oréal, 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 L'Oréal.

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 L'Oréal has a dividend yield of 1.96%. 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, L'Oréal reports a 5-year dividend growth of 8.68% year and a payout ratio of 56.06%.

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 L'Oréal's P/E ratio at 28.33. 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 L'Oréal's P/B ratio is 6.20.

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 L'Oréal's is 0.59%. 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 L'Oréal's ROE at 22.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $79.17 for Estée Lauder Companies and $360.00 for L'Oréal. Over the past year, Estée Lauder Companies's prices ranged from $62.29 to $159.75, with a yearly change of 156.46%. L'Oréal's prices fluctuated between $331.35 and $506.41, with a yearly change of 52.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.