Analyzing Helen of Troy (NASDAQ:HELE) and Estee Lauder Companies (NYSE:EL)

Helen of Troy (NASDAQ:HELE) and Estee Lauder Companies (NYSE:EL) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Institutional and Insider Ownership

55.2% of Estee Lauder Companies shares are held by institutional investors. 0.5% of Helen of Troy shares are held by company insiders. Comparatively, 12.8% of Estee Lauder Companies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Helen of Troy and Estee Lauder Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Helen of Troy	-17.89%	8.96%	4.70%
Estee Lauder Companies	-7.91%	12.37%	2.67%

Analyst Ratings

This is a summary of current ratings and recommmendations for Helen of Troy and Estee Lauder Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Helen of Troy	0	3	0	0	2.00
Estee Lauder Companies	0	12	8	1	2.48

Helen of Troy presently has a consensus target price of $44.33, suggesting a potential upside of 95.91%. Estee Lauder Companies has a consensus target price of $88.55, suggesting a potential upside of 0.93%. Given Helen of Troy’s higher possible upside, equities research analysts clearly believe Helen of Troy is more favorable than Estee Lauder Companies.

Volatility & Risk

Helen of Troy has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Estee Lauder Companies has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Valuation & Earnings

This table compares Helen of Troy and Estee Lauder Companies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Helen of Troy	$1.91 billion	0.27	$123.75 million	($14.52)	-1.56
Estee Lauder Companies	$14.33 billion	2.20	-$1.13 billion	($3.14)	-27.94

Helen of Troy has higher earnings, but lower revenue than Estee Lauder Companies. Estee Lauder Companies is trading at a lower price-to-earnings ratio than Helen of Troy, indicating that it is currently the more affordable of the two stocks.

Summary

Estee Lauder Companies beats Helen of Troy on 11 of the 15 factors compared between the two stocks.

About Helen of Troy

Helen of Troy Limited provides various consumer products in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates in two segments: Home & Outdoor and Beauty & Wellness. The Home & Outdoor segment offers food storage containers, kitchen utensils for cooking and preparing salads, fruits, vegetables and meats, graters, slicers and choppers, baking essentials, kitchen organization, bath, cleaning, infant and toddler products, and coffee preparation tools and electronics; and insulated beverageware, including bottles, travel tumblers, drinkware, mugs, food and lunch containers, insulated totes, soft coolers, outdoor kitchenware, and accessories. This segment also provides technical and outdoor sports packs, bike packs and bags, hydration and travel packs, duffel bags and luggage, lifestyle and everyday packs, kid carrier packs, and accessories. The Beauty & Wellness segment offers mass, professional and prestige hair appliances, brushes, grooming tools, and accessories; and prestige shampoos, liquid hair styling products, treatments, and conditioners. This segment also provides thermometers, blood pressure monitors, pulse oximeters, nasal aspirators, humidifiers, faucet mount and pitcher water filtration systems, air purifiers, heaters, fans, and humidification, thermometry, water filtration, and air purification consumables. The company sells its products through mass merchandisers, sporting goods retailers, department stores, drugstore chains, home improvement stores, grocery stores, specialty stores, prestige beauty chains, beauty supply retailers, e-commerce retailers, wholesalers, warehouse clubs, and various types of distributors, as well as directly to consumers under the OXO, Good Grips, Soft Works, OXO tot, OXO Brew, OXO Strive, OXO Outdoor, Hydro Flask, Osprey, Drybar, Hot Tools, Curlsmith, and PUR brands. Helen of Troy Limited was incorporated in 1968 and is headquartered in El Paso, Texas.

About Estee Lauder Companies

The Estée Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, serums, cleansers, toners, body care, exfoliators, acne care and oil correctors, facial masks, and sun care products; and makeup products, such as lipsticks, lip glosses, mascaras, foundations, eyeshadows, and powders, as well as compacts, brushes, and other makeup tools. The company also provides fragrance products in various forms comprising eau de parfum sprays and colognes, as well as lotions, powders, creams, candles, and soaps; and hair care products, including shampoos, conditioners, styling products, treatment, finishing sprays, and hair color products, as well as sells ancillary products and services. It offers its products under the Estée Lauder, Clinique, Origins, M·A·C, Bobbi Brown Cosmetics, La Mer, Aveda, Jo Malone London, TOM FORD, Too Faced, Dr.Jart+, and The Ordinary brands. The company sells its products through department stores, specialty-multi retailers, upscale perfumeries and pharmacies, and salons and spas; freestanding stores; its own and authorized retailer websites; third-party online malls; stores in airports; and duty-free locations. The Estée Lauder Companies Inc. was founded in 1946 and is headquartered in New York, New York.