Critical Comparison: Estee Lauder Companies, Inc. (The) (EL) & Inter Parfums (IPAR)
Inter Parfums (NASDAQ: IPAR) and Estee Lauder Companies, Inc. (The) (NYSE:EL) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitabiliy, analyst recommendations, institutional ownership and valuation.
Insider and Institutional Ownership
55.6% of Inter Parfums shares are held by institutional investors. Comparatively, 55.2% of Estee Lauder Companies, Inc. (The) shares are held by institutional investors. 45.5% of Inter Parfums 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Inter Parfums and Estee Lauder Companies, Inc. (The)’s 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%|
Risk & Volatility
Inter Parfums has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, Estee Lauder Companies, Inc. (The) has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.
Valuation & Earnings
This table compares Inter Parfums and Estee Lauder Companies, Inc. (The)’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Inter Parfums||$552.61 million||2.03||$86.29 million||$1.27||28.39|
|Estee Lauder Companies, Inc. (The)||$11.58 billion||3.10||$2.35 billion||$2.99||32.61|
Estee Lauder Companies, Inc. (The) has higher revenue and earnings than Inter Parfums. Inter Parfums 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.
This is a breakdown of current ratings and recommmendations for Inter Parfums and Estee Lauder Companies, Inc. (The), as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Estee Lauder Companies, Inc. (The)||1||4||13||0||2.67|
Inter Parfums presently has a consensus target price of $38.29, indicating a potential upside of 6.20%. Estee Lauder Companies, Inc. (The) has a consensus target price of $96.13, indicating a potential downside of 1.40%. Given Inter Parfums’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Inter Parfums is more favorable than Estee Lauder Companies, Inc. (The).
Inter Parfums pays an annual dividend of $0.68 per share and has a dividend yield of 1.9%. Estee Lauder Companies, Inc. (The) pays an annual dividend of $1.36 per share and has a dividend yield of 1.4%. Inter Parfums pays out 53.5% 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. Inter Parfums has raised its dividend for 3 consecutive years. Inter Parfums is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Estee Lauder Companies, Inc. (The) beats Inter Parfums on 10 of the 17 factors compared between the two stocks.
Inter Parfums Company Profile
Inter Parfums, Inc. operates in the fragrance business. The Company manufactures, markets and distributes an array of fragrance and fragrance related products. It operates through two segments: European based operations and United States based operations. The European Operations segment produces and distributes its fragrance products under license agreements with brand owners. It has a portfolio of prestige brands, which include Balmain, Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Lanvin, Paul Smith, S.T. Dupont, Repetto, Rochas, and Van Cleef & Arpels. Its prestige brand fragrance products are also marketed through its United States operations. These fragrance products are sold under various names, which include Abercrombie & Fitch, Agent Provocateur, Anna Sui, bebe, Dunhill, French Connection, Oscar de la Rent and Shanghai Tang brands. The Company sells its products to department stores, perfumeries, specialty stores, and domestic and international wholesalers and distributors.
Estee Lauder Companies, Inc. (The) Company Profile
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.
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