Estee Lauder Companies Inc (EL)vsRoyal Caribbean Cruises Ltd (RCL)
EL
Estee Lauder Companies Inc
$73.11
+2.28%
CONSUMER DEFENSIVE · Cap: $26.45B
RCL
Royal Caribbean Cruises Ltd
$279.01
+2.06%
CONSUMER CYCLICAL · Cap: $76.09B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Caribbean Cruises Ltd generates 22% more annual revenue ($17.93B vs $14.67B). RCL leads profitability with a 23.8% profit margin vs -1.2%. RCL appears more attractively valued with a PEG of 1.09. RCL earns a higher WallStSmart Score of 74/100 (B).
EL
Hold41
out of 100
Grade: D
RCL
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for EL.
Margin of Safety
+54.3%
Fair Value
$730.08
Current Price
$279.01
$451.07 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Generating 1.0B in free cash flow
Every $100 of equity generates 48 in profit
Large-cap with strong market position
Keeps 24 of every $100 in revenue as profit
Attractively priced relative to earnings
Strong operational efficiency at 22.0%
Earnings expanding 37.1% YoY
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
Weak financial health signals
ROE of -4.3% — below average capital efficiency
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : EL
The strongest argument for EL centers on Free Cash Flow.
Bull Case : RCL
The strongest argument for RCL centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 23.8% and operating margin at 22.0%. Revenue growth of 13.3% demonstrates continued momentum.
Bear Case : EL
The primary concerns for EL are PEG Ratio, Altman Z-Score, Piotroski F-Score. Debt-to-equity of 2.74 is elevated, increasing financial risk.
Bear Case : RCL
The primary concerns for RCL are Altman Z-Score.
Key Dynamics to Monitor
EL profiles as a turnaround stock while RCL is a mature play — different risk/reward profiles.
RCL carries more volatility with a beta of 1.93 — expect wider price swings.
RCL is growing revenue faster at 13.3% — sustainability is the question.
EL generates stronger free cash flow (1.0B), providing more financial flexibility.
Bottom Line
RCL scores higher overall (74/100 vs 41/100), backed by strong 23.8% margins and 13.3% revenue growth. Both earn "Strong Buy" 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 →Royal Caribbean Cruises Ltd
CONSUMER CYCLICAL · TRAVEL SERVICES · USA
Royal Caribbean Group, formerly known as Royal Caribbean Cruises Ltd., is an American global cruise holding company incorporated in Liberia and based in Miami, Florida, US.
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