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EL vs KO

EL
The Estée Lauder Companies Inc.
BEARISH
Price
$77.82
Market Cap
$28.15B
Sector
Consumer Defensive
AI Confidence
85%
KO
The Coca-Cola Company
NEUTRAL
Price
$75.97
Market Cap
$326.96B
Sector
Consumer Defensive
AI Confidence
90%

Valuation

P/E Ratio
EL
--
KO
24.99
Forward P/E
EL
25.84
KO
21.97
P/B Ratio
EL
6.98
KO
10.16
P/S Ratio
EL
1.92
KO
6.82
EV/EBITDA
EL
15.63
KO
22.47

Profitability

Gross Margin
EL
74.32%
KO
61.63%
Operating Margin
EL
14.26%
KO
24.66%
Profit Margin
EL
-1.21%
KO
27.34%
ROE
EL
-4.34%
KO
43.32%
ROA
EL
4.42%
KO
9.15%

Growth

Revenue Growth
EL
5.6%
KO
2.4%
Earnings Growth
EL
--
KO
3.6%

Financial Health

Debt/Equity
EL
2.33
KO
1.4
Current Ratio
EL
1.36
KO
1.46
Quick Ratio
EL
0.9
KO
0.89

Dividends

Dividend Yield
EL
1.8%
KO
2.71%
Payout Ratio
EL
471.43%
KO
67.11%

AI Verdict

EL BEARISH

The Estée Lauder Companies (EL) exhibits severe fundamental weakness, highlighted by a critical Piotroski F-Score of 2/9, indicating deteriorating financial health. While the company maintains strong gross margins (74.32%) and has a history of beating earnings estimates, these are overshadowed by an unsustainable dividend payout ratio of 471.43% and a high Debt/Equity ratio of 2.33. Massive insider selling exceeding $1 billion and a catastrophic 5-year price decline of 73.5% suggest a lack of confidence from internal stakeholders and long-term investors. Despite analyst 'buy' recommendations, the combination of negative ROE and weak deterministic scores points to significant structural risk.

Strengths
Very high gross margins (74.32%) indicating strong brand pricing power
Consistent track record of beating quarterly earnings estimates (3/4 recently)
Positive operating margin (14.26%) despite negative net profit
Risks
Unsustainable dividend payout ratio (471.43%) suggesting a high risk of dividend cut
Weak financial health as evidenced by a Piotroski F-Score of 2/9
High leverage with a Debt/Equity ratio of 2.33
KO NEUTRAL

KO shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (27.3% margin)
Strong ROE of 43.3%
Risks
Premium vs Graham Number ($22.62)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

EL vs KO: Head-to-Head Comparison

This page compares The Estée Lauder Companies Inc. (EL) and The Coca-Cola Company (KO) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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