Estee Lauder Companies Inc (EL)vsYum! Brands Inc (YUM)
EL
Estee Lauder Companies Inc
$86.20
+1.07%
CONSUMER DEFENSIVE · Cap: $30.86B
YUM
Yum! Brands Inc
$151.95
-3.37%
CONSUMER CYCLICAL · Cap: $43.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Estee Lauder Companies Inc generates 75% more annual revenue ($14.83B vs $8.49B). YUM leads profitability with a 20.5% profit margin vs -1.7%. EL appears more attractively valued with a PEG of 1.43. YUM earns a higher WallStSmart Score of 65/100 (C+).
EL
Hold38
out of 100
Grade: F
YUM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+35.7%
Fair Value
$163.80
Current Price
$86.20
$77.60 discount
Margin of Safety
-76.3%
Fair Value
$90.20
Current Price
$151.95
$61.75 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
No standout strengths identified
Strong operational efficiency at 31.0%
Earnings expanding 72.2% YoY
Keeps 21 of every $100 in revenue as profit
15.2% revenue growth
Areas to Watch
4.6% revenue growth
Distress zone — elevated risk
Weak financial health signals
ROE of -6.0% — below average capital efficiency
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : EL
PEG of 1.43 suggests the stock is reasonably priced for its growth.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 31.0%. Revenue growth of 15.2% demonstrates continued momentum.
Bear Case : EL
The primary concerns for EL are Revenue Growth, Altman Z-Score, Piotroski F-Score. Debt-to-equity of 2.74 is elevated, increasing financial risk.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
EL profiles as a turnaround stock while YUM is a growth play — different risk/reward profiles.
EL carries more volatility with a beta of 1.21 — expect wider price swings.
YUM is growing revenue faster at 15.2% — sustainability is the question.
YUM generates stronger free cash flow (341M), providing more financial flexibility.
Bottom Line
YUM scores higher overall (65/100 vs 38/100), backed by strong 20.5% margins and 15.2% revenue growth. EL offers better value entry with a 35.7% margin of safety. Both earn "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 →Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
Compare with Other HOUSEHOLD & PERSONAL PRODUCTS Stocks
Want to dig deeper into these stocks?