Yatsen (NYSE:YSG) versus Estee Lauder Companies (NYSE:EL) Financial Contrast

Yatsen (NYSE:YSG) and Estee Lauder Companies (NYSE:EL) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Volatility and Risk

Yatsen has a beta of -1.58, suggesting that its share price is 258% less volatile than the S&P 500. Comparatively, Estee Lauder Companies has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Earnings and Valuation

This table compares Yatsen and Estee Lauder Companies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yatsen	$4.54 billion	0.04	-$11.56 million	($0.32)	-6.06
Estee Lauder Companies	$15.05 billion	2.71	$182.00 million	$1.00	112.43

Estee Lauder Companies has higher revenue and earnings than Yatsen. Yatsen is trading at a lower price-to-earnings ratio than Estee Lauder Companies, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Yatsen and Estee Lauder Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yatsen	1	0	0	0	1.00
Estee Lauder Companies	1	14	11	2	2.50

Estee Lauder Companies has a consensus target price of $110.73, suggesting a potential downside of 1.51%. Given Estee Lauder Companies’ stronger consensus rating and higher probable upside, analysts clearly believe Estee Lauder Companies is more favorable than Yatsen.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Yatsen	-4.63%	-7.26%	-5.42%
Estee Lauder Companies	2.41%	26.99%	5.42%

Insider and Institutional Ownership

55.1% of Estee Lauder Companies shares are owned by institutional investors. 29.0% of Yatsen shares are owned by insiders. Comparatively, 11.5% of Estee Lauder Companies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Estee Lauder Companies beats Yatsen on 14 of the 15 factors compared between the two stocks.

About Yatsen

Yatsen is a China-based beauty company that develops, markets and sells cosmetics and skincare products. Its portfolio includes makeup, facial care, body care and other personal-care products, with sales conducted through e-commerce platforms, direct-to-consumer channels and offline retail outlets. The company’s best-known brand is Perfect Diary, which offers color cosmetics and related beauty products. Yatsen has also developed and operated brands including Little Ondine, Abby’s Choice and Pink Bear, while expanding its skincare portfolio through brands such as Galénic, DR.WU and Eve Lom.

About Estee Lauder Companies

The Estée Lauder Companies Inc. is a global prestige beauty company founded in 1946 by Estée and Joseph Lauder. Based in New York City, it develops, markets and sells beauty products under a portfolio of brands, including Estée Lauder, Clinique, M·A·C, La Mer, Aveda and Jo Malone London. The company’s products span skin care, makeup, fragrance and hair care. It reaches consumers through department stores, specialty retailers, its own stores and websites, and other online and travel-retail channels.