Analyzing United-Guardian (UG) and Estee Lauder Companies (EL)

United-Guardian (NASDAQ:UG) and Estee Lauder Companies (NYSE:EL) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Profitability

This table compares United-Guardian and Estee Lauder Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United-Guardian 33.88% 39.67% 34.93%
Estee Lauder Companies 8.48% 38.29% 14.00%

Dividends

United-Guardian pays an annual dividend of $1.00 per share and has a dividend yield of 5.7%. Estee Lauder Companies pays an annual dividend of $1.72 per share and has a dividend yield of 1.2%. Estee Lauder Companies pays out 38.1% of its earnings in the form of a dividend. Estee Lauder Companies has increased its dividend for 4 consecutive years.

Earnings and Valuation

This table compares United-Guardian and Estee Lauder Companies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United-Guardian $12.97 million 6.19 $3.84 million N/A N/A
Estee Lauder Companies $13.68 billion 3.75 $1.11 billion $4.51 31.35

Estee Lauder Companies has higher revenue and earnings than United-Guardian.

Volatility & Risk

United-Guardian has a beta of -0.17, meaning that its share price is 117% less volatile than the S&P 500. Comparatively, Estee Lauder Companies has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Institutional and Insider Ownership

24.6% of United-Guardian shares are held by institutional investors. Comparatively, 56.0% of Estee Lauder Companies shares are held by institutional investors. 30.8% of United-Guardian shares are held by insiders. Comparatively, 16.1% of Estee Lauder Companies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for United-Guardian and Estee Lauder Companies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United-Guardian 0 0 0 0 N/A
Estee Lauder Companies 0 5 18 0 2.78

Estee Lauder Companies has a consensus target price of $146.24, indicating a potential upside of 3.43%. Given Estee Lauder Companies’ higher probable upside, analysts plainly believe Estee Lauder Companies is more favorable than United-Guardian.

Summary

Estee Lauder Companies beats United-Guardian on 8 of the 15 factors compared between the two stocks.

About United-Guardian

United-Guardian, Inc. manufactures and markets cosmetic ingredients, personal care products, pharmaceuticals, medical lubricants, healthcare products, and specialty industrial products in the United States and internationally. It offers personal care products, including LUBRAJEL line of water-based moisturizing and lubricating gel formulations; LUBRAJEL II XD; ORCHID COMPLEX, an oil-soluble base for skin creams, lotions, cleansers, and other cosmetics; LUBRASLIDE and B-122 powdered lubricants for use in the manufacture of pressed powders, eyeliners, and rouges; KLENSOFT, a surfactant for use in shampoos, shower gels, makeup removers, and other cosmetic formulations; and LUBRASIL, a special form of LUBRAJEL in which silicone oil is incorporated into a LUBRAJEL base. The company's medical products comprise LUBRAJEL RR and RC lubricant gels for urinary catheters; LUBRAJEL MG to lubricate urinary catheters, pre-lubricated enema tips, and other medical devices; LUBRAJEL LC, LUBRAJEL FA, and LUBRAJEL BA, which are LUBRAJEL formulations for oral use; LUBRAJEL FLUID to lubricate water-soluble products; and LUBRAJEL TF, a medical lubricant. Its pharmaceutical products consist of RENACIDIN, a prescription drug to prevent and dissolve calcifications in urethral catheters and the urinary bladder; and CLORPACTIN WCS-90, an antimicrobial product to treat infections in the urinary bladder. The company's industrial products include DESELEX liquid, a sequestering and chelating agent for use in the manufacture of detergents; and THOROCLENS, a chlorine-based cleanser. United-Guardian, Inc. also conducts research and product development, primarily related to the development of cosmetic and personal care products. The company markets its products through marketing partners and distributors, advertising in medical and trade journals, mailings to physicians and to the trade, and exhibitions at medical meetings. United-Guardian, Inc. was founded in 1942 and is based in Hauppauge, New York.

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.

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