WallStSmart

Estee Lauder Companies Inc (EL)vsPrimo Brands Corporation (PRMB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Estee Lauder Companies Inc generates 120% more annual revenue ($14.67B vs $6.66B). PRMB leads profitability with a 0.9% profit margin vs -1.2%. EL earns a higher WallStSmart Score of 43/100 (D).

EL

Hold

43

out of 100

Grade: D

Growth: 3.3Profit: 4.0Value: 7.0Quality: 4.0
Piotroski: 3/9Altman Z: 1.68

PRMB

Hold

41

out of 100

Grade: D

Growth: 6.0Profit: 5.0Value: 5.7Quality: 4.0
Piotroski: 4/9Altman Z: 0.82
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ELUndervalued (+35.3%)

Margin of Safety

+35.3%

Fair Value

$162.86

Current Price

$76.71

$86.15 discount

UndervaluedFair: $162.86Overvalued
PRMBUndervalued (+32.4%)

Margin of Safety

+32.4%

Fair Value

$28.44

Current Price

$19.30

$9.14 discount

UndervaluedFair: $28.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EL1 strengths · Avg: 8.0/10
Free Cash FlowQuality
$1.02B8/10

Generating 1.0B in free cash flow

PRMB1 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Areas to Watch

EL4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.684/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-4.3%2/10

ROE of -4.3% — below average capital efficiency

EPS GrowthGrowth
-51.6%2/10

Earnings declined 51.6%

PRMB4 concerns · Avg: 2.8/10
Return on EquityProfitability
2.5%3/10

ROE of 2.5% — below average capital efficiency

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Debt/EquityHealth
1.803/10

Elevated debt levels

P/E RatioValuation
91.9x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : EL

The strongest argument for EL centers on Free Cash Flow. PEG of 1.43 suggests the stock is reasonably priced for its growth.

Bull Case : PRMB

The strongest argument for PRMB centers on Price/Book. Revenue growth of 11.2% demonstrates continued momentum.

Bear Case : EL

The primary concerns for EL are Altman Z-Score, Piotroski F-Score, Return on Equity. Debt-to-equity of 2.74 is elevated, increasing financial risk.

Bear Case : PRMB

The primary concerns for PRMB are Return on Equity, Profit Margin, Debt/Equity. A P/E of 91.9x leaves little room for execution misses. Debt-to-equity of 1.80 is elevated, increasing financial risk.

Key Dynamics to Monitor

EL profiles as a turnaround stock while PRMB is a value play — different risk/reward profiles.

EL carries more volatility with a beta of 1.25 — expect wider price swings.

PRMB is growing revenue faster at 11.2% — sustainability is the question.

EL generates stronger free cash flow (1.0B), providing more financial flexibility.

Bottom Line

EL scores higher overall (43/100 vs 41/100). PRMB offers better value entry with a 32.4% margin of safety. Both earn "Hold" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Estee Lauder Companies Inc

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

The Estee Lauder Companies Inc. is an American multinational manufacturer and marketer of prestige skincare, makeup, fragrance and hair care products, based in Midtown Manhattan, New York City. The company owns a diverse portfolio of brands, distributed internationally through both digital commerce and retail channels.

Visit Website →

Primo Brands Corporation

CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA

Primo Brands Corporation (Ticker: PRMB) operates as a leading player in the beverage sector, focusing on premium functional drinks designed for health-oriented consumers. The company's comprehensive portfolio encompasses a variety of traditional and ready-to-drink beverages, effectively addressing the rising consumer preference for wellness and convenience. Emphasizing sustainability and quality in its sourcing practices, Primo Brands fosters robust brand loyalty and distinguishes itself within a competitive marketplace. As the company seeks to innovate and broaden its product range, it remains well-positioned to deliver sustainable long-term value to its shareholders.

Visit Website →

Want to dig deeper into these stocks?