Comprehensive Stock Comparison
Compare The Estée Lauder Companies Inc. (EL) vs Coty Inc. (COTY) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | COTY | -3.7% revenue growth vs EL's -8.5% |
| Value | COTY | Lower P/E (8.4x vs 49.1x) |
| Quality / Margins | EL | -1.2% net margin vs COTY's -9.2% |
| Stability / Safety | COTY | Beta 1.09 vs EL's 1.51, lower leverage |
| Dividends | EL | 1.6% yield, vs COTY's 0.6% |
| Momentum (1Y) | EL | +54.7% vs COTY's -55.9% |
| Efficiency (ROA) | EL | -0.9% ROA vs COTY's -4.8%, ROIC 6.5% vs 2.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Estée Lauder Companies is a global prestige beauty conglomerate that develops, manufactures, and markets luxury skincare, makeup, fragrance, and hair care products. It generates revenue primarily through product sales across its portfolio of over 25 prestige brands—with skincare representing its largest segment at roughly 60% of sales—through department stores, specialty retailers, e-commerce, and freestanding stores. The company's competitive advantage lies in its powerful portfolio of iconic prestige brands, global distribution reach in high-end retail channels, and deep expertise in luxury beauty marketing.
Coty is a global beauty company that manufactures and sells prestige fragrances, cosmetics, and skincare products. It generates revenue through two main segments: prestige beauty (approximately 60% of sales) sold through department stores and specialty retailers, and consumer beauty (around 40%) sold through mass-market channels like drugstores and supermarkets. The company's key advantage lies in its extensive portfolio of licensed prestige brands — including Gucci, Burberry, and Calvin Klein — which provides strong brand recognition and distribution leverage.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
EL leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). COTY leads in 1 (Valuation Metrics). 2 tied.
Financial Metrics (TTM)
EL is the larger business by revenue, generating $14.7B annually — 2.5x COTY's $5.8B. EL is the more profitable business, keeping -1.2% of every revenue dollar as net income compared to COTY's -9.2%. On growth, EL holds the edge at +5.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ELThe Estée Lauder … | COTYCoty Inc. |
|---|---|---|
| RevenueTrailing 12 months | $14.7B | $5.8B |
| EBITDAEarnings before interest/tax | $1.9B | $373M |
| Net IncomeAfter-tax profit | -$178M | -$534M |
| Free Cash FlowCash after capex | $1.1B | $394M |
| Gross MarginGross profit ÷ Revenue | +74.4% | +63.7% |
| Operating MarginEBIT ÷ Revenue | +7.3% | +1.2% |
| Net MarginNet income ÷ Revenue | -1.2% | -9.2% |
| FCF MarginFCF ÷ Revenue | +7.7% | +6.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +5.8% | +0.5% |
| EPS Growth (YoY)Latest quarter vs prior year | +126.8% | -7.0% |
Valuation Metrics
On an enterprise value basis, COTY's 9.3x EV/EBITDA is more attractive than EL's 10.7x.
| Metric | ELThe Estée Lauder … | COTYCoty Inc. |
|---|---|---|
| Market CapShares × price | $12.5B | $2.2B |
| Enterprise ValueMkt cap + debt − cash | $19.1B | $6.2B |
| Trailing P/EPrice ÷ TTM EPS | -34.75x | -5.70x |
| Forward P/EPrice ÷ next-FY EPS est. | 49.10x | 8.44x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 10.66x | 9.34x |
| Price / SalesMarket cap ÷ Revenue | 0.88x | 0.37x |
| Price / BookPrice ÷ Book value/share | 10.20x | 0.55x |
| Price / FCFMarket cap ÷ FCF | 18.71x | 7.89x |
Profitability & Efficiency
EL delivers a -4.4% return on equity — every $100 of shareholder capital generates $-4 in annual profit, vs $-14 for COTY. COTY carries lower financial leverage with a 1.07x debt-to-equity ratio, signaling a more conservative balance sheet compared to EL's 2.44x. On the Piotroski fundamental quality scale (0–9), COTY scores 5/9 vs EL's 4/9, reflecting solid financial health.
| Metric | ELThe Estée Lauder … | COTYCoty Inc. |
|---|---|---|
| ROE (TTM)Return on equity | -4.4% | -14.4% |
| ROA (TTM)Return on assets | -0.9% | -4.8% |
| ROICReturn on invested capital | +6.5% | +2.3% |
| ROCEReturn on capital employed | +6.3% | +2.6% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 5 |
| Debt / EquityFinancial leverage | 2.44x | 1.07x |
| Net DebtTotal debt minus cash | $6.5B | $4.0B |
| Cash & Equiv.Liquid assets | $2.9B | $257M |
| Total DebtShort + long-term debt | $9.4B | $4.2B |
| Interest CoverageEBIT ÷ Interest expense | 1.96x | -1.24x |
Total Returns (with DRIP)
A $10,000 investment in EL five years ago would be worth $4,093 today (with dividends reinvested), compared to $3,110 for COTY. Over the past 12 months, EL leads with a +54.7% total return vs COTY's -55.9%. The 3-year compound annual growth rate (CAGR) favors EL at -22.0% vs COTY's -39.4% — a key indicator of consistent wealth creation.
| Metric | ELThe Estée Lauder … | COTYCoty Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +2.9% | -19.3% |
| 1-Year ReturnPast 12 months | +54.7% | -55.9% |
| 3-Year ReturnCumulative with dividends | -52.5% | -77.8% |
| 5-Year ReturnCumulative with dividends | -59.1% | -68.9% |
| 10-Year ReturnCumulative with dividends | +40.2% | -84.1% |
| CAGR (3Y)Annualised 3-year return | -22.0% | -39.4% |
Risk & Volatility
COTY is the less volatile stock with a 1.09 beta — it tends to amplify market swings less than EL's 1.51 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. EL currently trades 90.0% from its 52-week high vs COTY's 40.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ELThe Estée Lauder … | COTYCoty Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.51x | 1.09x |
| 52-Week HighHighest price in past year | $121.64 | $6.13 |
| 52-Week LowLowest price in past year | $48.37 | $2.44 |
| % of 52W HighCurrent price vs 52-week peak | +90.0% | +40.9% |
| RSI (14)Momentum oscillator 0–100 | 51.8 | 40.7 |
| Avg Volume (50D)Average daily shares traded | 3.3M | 7.4M |
Analyst Outlook
Wall Street rates EL as "Hold" and COTY as "Hold". Consensus price targets imply 62.2% upside for COTY (target: $4) vs 1.4% for EL (target: $111). For income investors, EL offers the higher dividend yield at 1.57% vs COTY's 0.61%.
| Metric | ELThe Estée Lauder … | COTYCoty Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $111.00 | $4.07 |
| # AnalystsCovering analysts | 46 | 33 |
| Dividend YieldAnnual dividend ÷ price | +1.6% | +0.6% |
| Dividend StreakConsecutive years of raises | 0 | 1 |
| Dividend / ShareAnnual DPS | $1.72 | $0.02 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.3% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| The Estée Lauder Co… (EL) | 100 | 61.43 | -38.6% |
| Coty Inc. (COTY) | 100 | 34.84 | -65.2% |
The Estée Lauder Co… (EL) returned -59% over 5 years vs Coty Inc. (COTY)'s -69%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Estée Lauder Co… (EL) | $11.3B | $14.3B | +26.9% |
| Coty Inc. (COTY) | $4.3B | $5.9B | +35.5% |
The Estée Lauder Companies Inc.'s revenue grew from $11.3B (2016) to $14.3B (2025) — a 2.7% CAGR. Coty Inc.'s revenue grew from $4.3B (2016) to $5.9B (2025) — a 3.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Estée Lauder Co… (EL) | 9.9% | -7.9% | -180.1% |
| Coty Inc. (COTY) | 3.6% | -6.2% | -273.1% |
The Estée Lauder Companies Inc.'s net margin went from 10% (2016) to -8% (2025). Coty Inc.'s net margin went from 4% (2016) to -6% (2025).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| The Estée Lauder Co… (EL) | 38 | 69.4 | +82.6% |
| Coty Inc. (COTY) | 27.6 | 80.6 | +192.0% |
The Estée Lauder Companies Inc. has traded in a 38x–143x P/E range over 8 years; current trailing P/E is ~-35x. Coty Inc. has traded in a 22x–81x P/E range over 3 years; current trailing P/E is ~-6x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Estée Lauder Co… (EL) | 2.96 | -3.15 | -206.4% |
| Coty Inc. (COTY) | 0.44 | -0.44 | -200.0% |
The Estée Lauder Companies Inc.'s EPS grew from $2.96 (2016) to $-3.15 (2025) — a NaN% CAGR. Coty Inc.'s EPS grew from $0.44 (2016) to $-0.44 (2025) — a NaN% CAGR.
Chart 6Free Cash Flow — 5 Years
The Estée Lauder Companies Inc. generated $670M FCF in 2025 (-78% vs 2021). Coty Inc. generated $278M FCF in 2025 (+92% vs 2021).
EL vs COTY: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is EL or COTY a better buy right now?
Analysts rate The Estée Lauder Companies Inc. (EL) a "Hold" — based on 46 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — EL or COTY?
Over the past 5 years, The Estée Lauder Companies Inc. (EL) delivered a total return of -59.1%, compared to -68.9% for Coty Inc. (COTY). A $10,000 investment in EL five years ago would be worth approximately $4K today (assuming dividends reinvested). Over 10 years, the gap is even starker: EL returned +40.2% versus COTY's -84.1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — EL or COTY?
By beta (market sensitivity over 5 years), Coty Inc. (COTY) is the lower-risk stock at 1.09β versus The Estée Lauder Companies Inc.'s 1.51β — meaning EL is approximately 38% more volatile than COTY relative to the S&P 500. On balance sheet safety, Coty Inc. (COTY) carries a lower debt/equity ratio of 107% versus 2% for The Estée Lauder Companies Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — EL or COTY?
Coty Inc. (COTY) is the more profitable company, earning -6.2% net margin versus -7.9% for The Estée Lauder Companies Inc. — meaning it keeps -6.2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: EL leads at 6.7% versus 4.1% for COTY. At the gross margin level — before operating expenses — EL leads at 73.9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
05Is EL or COTY more undervalued right now?
On forward earnings alone, Coty Inc. (COTY) trades at 8.4x forward P/E versus 49.1x for The Estée Lauder Companies Inc. — 40.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for COTY: 62.2% to $4.07.
06Which pays a better dividend — EL or COTY?
All stocks in this comparison pay dividends. The Estée Lauder Companies Inc. (EL) offers the highest yield at 1.6%, versus 0.6% for Coty Inc. (COTY).
07Is EL or COTY better for a retirement portfolio?
For long-horizon retirement investors, Coty Inc. (COTY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.09), 0.6% yield). The Estée Lauder Companies Inc. (EL) carries a higher beta of 1.51 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (COTY: -84.1%, EL: +40.2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
08What are the main differences between EL and COTY?
Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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