WALD vs ELF vs COTY

For growth investors, e.

l. f. Beauty, Inc. (ELF) is the stronger pick with 28. 3% revenue growth year-over-year, versus -3. 7% for Coty Inc. (COTY). e. l. f. Beauty, Inc. (ELF) offers the better valuation at 32. 2x trailing P/E (19. 9x forward), making it the more compelling value choice. Analysts rate Waldencast plc (WALD) a "Buy" — based on 4 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, Coty Inc.

is actually cheaper at 9. 2x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, e.

l. f. Beauty, Inc. (ELF) delivered a total return of +105. 0%, compared to -85. 8% for Waldencast plc (WALD). Over 10 years, the gap is even starker: ELF returned +133. 1% versus WALD's -85. 8%. 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), Coty Inc.

(COTY) is the lower-risk stock at 1. 08β versus e. l. f. Beauty, Inc. 's 2. 36β — meaning ELF is approximately 118% more volatile than COTY relative to the S&P 500. On balance sheet safety, Waldencast plc (WALD) carries a lower debt/equity ratio of 25% versus 107% for Coty 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 -3. 7% for Coty Inc. (COTY). On earnings-per-share growth, the picture is similar: Waldencast plc grew EPS 56. 2% year-over-year, compared to -609. 8% for Coty 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 -15. 5% for Waldencast plc — 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 -21. 4% for WALD. At the gross margin level — before operating expenses — ELF leads at 71. 2%, 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, Coty Inc.

(COTY) trades at 9. 2x forward P/E versus 19. 9x for e. l. f. Beauty, Inc. — 10. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WALD: 78. 6% to $2. 50.

In this comparison, COTY (0.

6% yield) pays a dividend. WALD, ELF do not pay a meaningful dividend and should not be held primarily for income.

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. 08), 0. 6% 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 (COTY: -83. 0%, ELF: +133. 1%), 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.

These companies operate in different sectors (WALD (Technology) and ELF (Consumer Defensive) and COTY (Consumer Defensive)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: WALD is a small-cap high-growth stock; ELF is a small-cap high-growth stock; COTY is a small-cap quality compounder stock. COTY pays a dividend while WALD, ELF do 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.