Estee Lauder Companies Inc (EL)vsVertex Pharmaceuticals Inc (VRTX)
EL
Estee Lauder Companies Inc
$73.11
+2.28%
CONSUMER DEFENSIVE · Cap: $26.45B
VRTX
Vertex Pharmaceuticals Inc
$454.97
+1.42%
HEALTHCARE · Cap: $113.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Estee Lauder Companies Inc generates 22% more annual revenue ($14.67B vs $12.00B). VRTX leads profitability with a 32.9% profit margin vs -1.2%. EL appears more attractively valued with a PEG of 1.77. VRTX earns a higher WallStSmart Score of 66/100 (B-).
EL
Hold41
out of 100
Grade: D
VRTX
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for EL.
Margin of Safety
+36.5%
Fair Value
$716.04
Current Price
$454.97
$261.07 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Generating 1.0B in free cash flow
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 39.6%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
Weak financial health signals
ROE of -4.3% — below average capital efficiency
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : EL
The strongest argument for EL centers on Free Cash Flow.
Bull Case : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 32.9% and operating margin at 39.6%.
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 : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
EL profiles as a turnaround stock while VRTX is a mature play — different risk/reward profiles.
EL carries more volatility with a beta of 1.11 — expect wider price swings.
VRTX is growing revenue faster at 9.5% — sustainability is the question.
EL generates stronger free cash flow (1.0B), providing more financial flexibility.
Bottom Line
VRTX scores higher overall (66/100 vs 41/100), backed by strong 32.9% margins. 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 →Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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