Estee Lauder Companies (NYSE:EL) and 2050 Motors (OTCMKTS:ETFM) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Risk & Volatility
Estee Lauder Companies has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, 2050 Motors has a beta of -2.07, meaning that its stock price is 307% less volatile than the S&P 500.
This table compares Estee Lauder Companies and 2050 Motors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Estee Lauder Companies||8.48%||38.29%||14.00%|
Insider & Institutional Ownership
57.3% of Estee Lauder Companies shares are owned by institutional investors. 16.1% of Estee Lauder Companies shares are owned by insiders. Comparatively, 8.7% of 2050 Motors shares are owned by 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.
This is a summary of current ratings and recommmendations for Estee Lauder Companies and 2050 Motors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Estee Lauder Companies||0||5||18||0||2.78|
Estee Lauder Companies presently has a consensus target price of $146.24, suggesting a potential upside of 4.37%. Given Estee Lauder Companies’ higher probable upside, equities analysts clearly believe Estee Lauder Companies is more favorable than 2050 Motors.
Earnings & Valuation
This table compares Estee Lauder Companies and 2050 Motors’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Estee Lauder Companies||$13.68 billion||3.72||$1.11 billion||$4.51||31.07|
|2050 Motors||N/A||N/A||-$1.18 million||N/A||N/A|
Estee Lauder Companies has higher revenue and earnings than 2050 Motors.
Estee Lauder Companies pays an annual dividend of $1.52 per share and has a dividend yield of 1.1%. 2050 Motors does not pay a dividend. Estee Lauder Companies pays out 33.7% of its earnings in the form of a dividend. Estee Lauder Companies has increased its dividend for 4 consecutive years.
Estee Lauder Companies beats 2050 Motors on 12 of the 13 factors compared between the two stocks.
About Estee Lauder Companies
The Estée Lauder Companies Inc. manufactures and markets skin care, makeup, fragrance, and hair care products. The company offers a range of skin care products, such as moisturizers, serums, cleansers, toners, body care products, exfoliators, acne care products, facial masks, cleansing devices, and sun care products; and makeup products, including lipsticks, lip glosses, mascaras, foundations, eyeshadows, nail polishes, and powders, as well as related items, including compacts, brushes, and other makeup tools. It also provides fragrance products in various forms comprising eau de parfum sprays and colognes, lotions, powders, creams, candles, and soaps; and hair care products consisting of shampoos, conditioners, styling products, treatment, finishing sprays, and hair color products, as well as sells ancillary products and services. The company offers its products under the brand names of Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, M·A·C, Bobbi Brown, La Mer, Aveda, Jo Malone London, Bumble and bumble, Darphin, Ojon, Smashbox, RODIN olio lusso, FLIRT!, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, By Kilian, BECCA, and Too Faced. In addition, it operates as a licensee for fragrances and/or cosmetics sold under the Tommy Hilfiger, Donna Karan New York, DKNY, Kiton, Michael Kors, Tom Ford, Dr. Andrew Weil, Ermenegildo Zegna, AERIN, and Tory Burch brand names. The company sells its products through department stores, specialty multi-brand retailers, upscale perfumeries, pharmacies, and salons and spas; freestanding stores; e-commerce Websites; stores in airports and on cruise ships; in-flight and duty-free shops; and self-select outlets. It has operations in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The Estée Lauder Companies Inc. was founded in 1946 and is based in New York, New York.
About 2050 Motors
2050 Motors, Inc., a development stage company, intends to import, market, and sell electric automobiles in the United States, Puerto Rico, the United States Territories, and Peru. Its product is e-Go EV, a lightweight carbon fiber electric vehicle. The company was founded in 2012 and is based in North Las Vegas, Nevada.
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