EL vs ELF

For growth investors, e.

l. f. Beauty, Inc. (ELF) is the stronger pick with 28. 3% revenue growth year-over-year, versus -8. 5% for The Estée Lauder Companies Inc. (EL). e. l. f. Beauty, Inc. (ELF) offers the better valuation at 32. 0x trailing P/E (19. 8x 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.

On forward P/E, e.

l. f. Beauty, Inc. is actually cheaper at 19. 8x.

Over the past 5 years, e.

l. f. Beauty, Inc. (ELF) delivered a total return of +100. 9%, compared to -67. 4% for The Estée Lauder Companies Inc. (EL). Over 10 years, the gap is even starker: ELF returned +131. 8% versus EL's +11. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), The Estée Lauder Companies Inc.

(EL) is the lower-risk stock at 1. 73β versus e. l. f. Beauty, Inc. 's 2. 36β — meaning ELF is approximately 36% 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.

By revenue growth (latest reported year), e.

l. f. Beauty, Inc. (ELF) is pulling ahead at 28. 3% versus -8. 5% for The Estée Lauder Companies Inc. (EL). On earnings-per-share growth, the picture is similar: e. l. f. Beauty, Inc. grew EPS -13. 1% year-over-year, compared to -391. 7% for The Estée Lauder Companies Inc.. Over a 3-year CAGR, ELF leads at 49. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

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.

On forward earnings alone, e.

l. f. Beauty, Inc. (ELF) trades at 19. 8x forward P/E versus 39. 0x for The Estée Lauder Companies Inc. — 19. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ELF: 54. 9% to $95. 17.

In this comparison, EL (2.

0% yield) pays a dividend. ELF does not pay a meaningful dividend and should not be held primarily for income.

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 (2. 0% yield). e. l. f. Beauty, Inc. (ELF) carries a higher beta of 2. 36 — 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: +11. 9%, ELF: +131. 8%), 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.

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.

In terms of investment character: EL is a mid-cap quality compounder stock; ELF is a small-cap high-growth stock. 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.