Comprehensive Stock Comparison
Compare The Estée Lauder Companies Inc. (EL) vs e.l.f. Beauty, Inc. (ELF) 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 | ELF | 28.3% revenue growth vs EL's -8.5% |
| Value | ELF | Lower P/E (29.7x vs 49.1x) |
| Quality / Margins | ELF | 6.8% net margin vs EL's -1.2% |
| Stability / Safety | EL | Beta 1.51 vs ELF's 1.66 |
| Dividends | EL | 1.6% yield; ELF pays no meaningful dividend |
| Momentum (1Y) | EL | +54.7% vs ELF's +31.0% |
| Efficiency (ROA) | ELF | 4.5% ROA vs EL's -0.9%, ROIC 13.5% vs 6.5% |
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.
e.l.f. Beauty is a cosmetics and skincare company offering affordable, high-quality beauty products under brands like e.l.f. Cosmetics, e.l.f. Skin, Well People, and Keys Soulcare. It generates revenue primarily through wholesale distribution to major retailers — accounting for most sales — complemented by direct-to-consumer e-commerce channels. The company's competitive advantage lies in its "accessible luxury" positioning — delivering premium-quality products at drugstore prices through efficient supply chains and strong social media marketing that resonates with younger consumers.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
ELF leads in 4 of 6 categories (Financial Metrics, Profitability & Efficiency). EL leads in 2 (Valuation Metrics, Risk & Volatility).
Financial Metrics (TTM)
EL is the larger business by revenue, generating $14.7B annually — 9.7x ELF's $1.5B. ELF is the more profitable business, keeping 6.8% of every revenue dollar as net income compared to EL's -1.2%. On growth, ELF holds the edge at +37.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ELThe Estée Lauder … | ELFe.l.f. Beauty, In… |
|---|---|---|
| RevenueTrailing 12 months | $14.7B | $1.5B |
| EBITDAEarnings before interest/tax | $1.9B | $235M |
| Net IncomeAfter-tax profit | -$178M | $104M |
| Free Cash FlowCash after capex | $1.1B | $215M |
| Gross MarginGross profit ÷ Revenue | +74.4% | +70.3% |
| Operating MarginEBIT ÷ Revenue | +7.3% | +11.1% |
| Net MarginNet income ÷ Revenue | -1.2% | +6.8% |
| FCF MarginFCF ÷ Revenue | +7.7% | +14.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +5.8% | +37.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +126.8% | +116.7% |
Valuation Metrics
On an enterprise value basis, EL's 10.7x EV/EBITDA is more attractive than ELF's 26.2x.
| Metric | ELThe Estée Lauder … | ELFe.l.f. Beauty, In… |
|---|---|---|
| Market CapShares × price | $12.5B | $5.1B |
| Enterprise ValueMkt cap + debt − cash | $19.1B | $5.3B |
| Trailing P/EPrice ÷ TTM EPS | -34.75x | 47.94x |
| Forward P/EPrice ÷ next-FY EPS est. | 49.10x | 29.66x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.18x |
| EV / EBITDAEnterprise value multiple | 10.66x | 26.19x |
| Price / SalesMarket cap ÷ Revenue | 0.88x | 3.91x |
| Price / BookPrice ÷ Book value/share | 10.20x | 7.06x |
| Price / FCFMarket cap ÷ FCF | 18.71x | 44.48x |
Profitability & Efficiency
ELF delivers a 8.9% return on equity — every $100 of shareholder capital generates $9 in annual profit, vs $-4 for EL. ELF carries lower financial leverage with a 0.41x debt-to-equity ratio, signaling a more conservative balance sheet compared to EL's 2.44x. On the Piotroski fundamental quality scale (0–9), ELF scores 7/9 vs EL's 4/9, reflecting strong financial health.
| Metric | ELThe Estée Lauder … | ELFe.l.f. Beauty, In… |
|---|---|---|
| ROE (TTM)Return on equity | -4.4% | +8.9% |
| ROA (TTM)Return on assets | -0.9% | +4.5% |
| ROICReturn on invested capital | +6.5% | +13.5% |
| ROCEReturn on capital employed | +6.3% | +16.6% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 7 |
| Debt / EquityFinancial leverage | 2.44x | 0.41x |
| Net DebtTotal debt minus cash | $6.5B | $164M |
| Cash & Equiv.Liquid assets | $2.9B | $149M |
| Total DebtShort + long-term debt | $9.4B | $313M |
| Interest CoverageEBIT ÷ Interest expense | 1.96x | 6.48x |
Total Returns (with DRIP)
A $10,000 investment in ELF five years ago would be worth $33,842 today (with dividends reinvested), compared to $4,093 for EL. Over the past 12 months, EL leads with a +54.7% total return vs ELF's +31.0%. The 3-year compound annual growth rate (CAGR) favors ELF at 7.2% vs EL's -22.0% — a key indicator of consistent wealth creation.
| Metric | ELThe Estée Lauder … | ELFe.l.f. Beauty, In… |
|---|---|---|
| YTD ReturnYear-to-date | +2.9% | +18.3% |
| 1-Year ReturnPast 12 months | +54.7% | +31.0% |
| 3-Year ReturnCumulative with dividends | -52.5% | +23.1% |
| 5-Year ReturnCumulative with dividends | -59.1% | +238.4% |
| 10-Year ReturnCumulative with dividends | +40.2% | +247.4% |
| CAGR (3Y)Annualised 3-year return | -22.0% | +7.2% |
Risk & Volatility
EL is the less volatile stock with a 1.51 beta — it tends to amplify market swings less than ELF's 1.66 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 ELF's 61.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ELThe Estée Lauder … | ELFe.l.f. Beauty, In… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.51x | 1.66x |
| 52-Week HighHighest price in past year | $121.64 | $150.99 |
| 52-Week LowLowest price in past year | $48.37 | $49.40 |
| % of 52W HighCurrent price vs 52-week peak | +90.0% | +61.0% |
| RSI (14)Momentum oscillator 0–100 | 51.8 | 60.6 |
| Avg Volume (50D)Average daily shares traded | 3.3M | 1.7M |
Analyst Outlook
Wall Street rates EL as "Hold" and ELF as "Buy". Consensus price targets imply 22.6% upside for ELF (target: $113) vs 1.4% for EL (target: $111). EL is the only dividend payer here at 1.57% yield — a key consideration for income-focused portfolios.
| Metric | ELThe Estée Lauder … | ELFe.l.f. Beauty, In… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $111.00 | $112.86 |
| # AnalystsCovering analysts | 46 | 27 |
| Dividend YieldAnnual dividend ÷ price | +1.6% | — |
| Dividend StreakConsecutive years of raises | 0 | 1 |
| Dividend / ShareAnnual DPS | $1.72 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.3% | +1.3% |
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% |
| e.l.f. Beauty, Inc. (ELF) | 100 | 521.8 | +421.8% |
The Estée Lauder Co… (EL) returned -59% over 5 years vs e.l.f. Beauty, Inc. (ELF)'s -59%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Estée Lauder Co… (EL) | $11.3B | $14.3B | +26.9% |
| e.l.f. Beauty, Inc. (ELF) | $191M | $1.3B | +586.2% |
The Estée Lauder Companies Inc.'s revenue grew from $11.3B (2016) to $14.3B (2025) — a 2.7% CAGR. e.l.f. Beauty, Inc.'s revenue grew from $191M (2016) to $1.3B (2025) — a 23.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Estée Lauder Co… (EL) | 9.9% | -7.9% | -180.1% |
| e.l.f. Beauty, Inc. (ELF) | 2.3% | 8.5% | +274.9% |
The Estée Lauder Companies Inc.'s net margin went from 10% (2016) to -8% (2025). e.l.f. Beauty, Inc.'s net margin went from 2% (2016) to 9% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| The Estée Lauder Co… (EL) | 38 | 69.4 | +82.6% |
| e.l.f. Beauty, Inc. (ELF) | 202.8 | 39.6 | -80.5% |
The Estée Lauder Companies Inc. has traded in a 38x–143x P/E range over 8 years; current trailing P/E is ~-35x. e.l.f. Beauty, Inc. has traded in a 13x–277x P/E range over 9 years; current trailing P/E is ~48x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Estée Lauder Co… (EL) | 2.96 | -3.15 | -206.4% |
| e.l.f. Beauty, Inc. (ELF) | -1.14 | 1.92 | +268.4% |
The Estée Lauder Companies Inc.'s EPS grew from $2.96 (2016) to $-3.15 (2025) — a NaN% CAGR. e.l.f. Beauty, Inc.'s EPS grew from $-1.14 (2016) to $1.92 (2025).
Chart 6Free Cash Flow — 5 Years
The Estée Lauder Companies Inc. generated $670M FCF in 2025 (-78% vs 2021). e.l.f. Beauty, Inc. generated $115M FCF in 2025 (+401% vs 2021).
EL vs ELF: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is EL or ELF a better buy right now?
e.l.f. Beauty, Inc. (ELF) offers the better valuation at 47.9x trailing P/E (29.7x forward), making it the more compelling value choice. Analysts rate e.l.f. Beauty, Inc. (ELF) a "Buy" — based on 27 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 has the better valuation — EL or ELF?
On forward P/E, e.l.f. Beauty, Inc. is actually cheaper at 29.7x.
03Which is the better long-term investment — EL or ELF?
Over the past 5 years, e.l.f. Beauty, Inc. (ELF) delivered a total return of +238.4%, compared to -59.1% for The Estée Lauder Companies Inc. (EL). A $10,000 investment in ELF five years ago would be worth approximately $34K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ELF returned +247.4% versus EL's +40.2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — EL or ELF?
By beta (market sensitivity over 5 years), The Estée Lauder Companies Inc. (EL) is the lower-risk stock at 1.51β versus e.l.f. Beauty, Inc.'s 1.66β — meaning ELF is approximately 9% more volatile than EL relative to the S&P 500. On balance sheet safety, e.l.f. Beauty, Inc. (ELF) carries a lower debt/equity ratio of 41% versus 2% for The Estée Lauder Companies Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — EL or ELF?
e.l.f. Beauty, Inc. (ELF) is the more profitable company, earning 8.5% net margin versus -7.9% for The Estée Lauder Companies Inc. — meaning it keeps 8.5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ELF leads at 12.0% versus 6.7% for EL. 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.
06Is EL or ELF more undervalued right now?
On forward earnings alone, e.l.f. Beauty, Inc. (ELF) trades at 29.7x forward P/E versus 49.1x for The Estée Lauder Companies Inc. — 19.4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ELF: 22.6% to $112.86.
07Which pays a better dividend — EL or ELF?
In this comparison, EL (1.6% yield) pays a dividend. ELF does not pay a meaningful dividend and should not be held primarily for income.
08Is EL or ELF better for a retirement portfolio?
For long-horizon retirement investors, The Estée Lauder Companies Inc. (EL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1.6% yield). e.l.f. Beauty, Inc. (ELF) carries a higher beta of 1.66 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (EL: +40.2%, ELF: +247.4%), 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.
09What are the main differences between EL and ELF?
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. EL pays a dividend while ELF does not, making them suitable for different income and tax situations. 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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