Head-To-Head Comparison: ODDITY Tech (NASDAQ:ODD) vs. Estee Lauder Companies (NYSE:EL)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Estee Lauder Companies	2.41%	26.99%	5.42%
ODDITY Tech	2.23%	2.58%	0.80%

Analyst Recommendations

This is a breakdown of current ratings for Estee Lauder Companies and ODDITY Tech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Estee Lauder Companies	1	14	11	2	2.50
ODDITY Tech	3	10	0	1	1.93

Estee Lauder Companies currently has a consensus target price of $110.31, indicating a potential downside of 0.09%. ODDITY Tech has a consensus target price of $22.35, indicating a potential upside of 4.71%. Given ODDITY Tech’s higher possible upside, analysts clearly believe ODDITY Tech is more favorable than Estee Lauder Companies.

Risk & Volatility

Estee Lauder Companies has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, ODDITY Tech has a beta of 2.14, suggesting that its stock price is 114% more volatile than the S&P 500.

Insider & Institutional Ownership

55.2% of Estee Lauder Companies shares are owned by institutional investors. Comparatively, 35.9% of ODDITY Tech shares are owned by institutional investors. 11.5% of Estee Lauder Companies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Estee Lauder Companies	$15.28 billion	2.61	$182.00 million	$1.00	110.41
ODDITY Tech	$809.84 million	1.52	$110.75 million	$0.24	88.94

Estee Lauder Companies has higher revenue and earnings than ODDITY Tech. ODDITY Tech 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.

Summary

Estee Lauder Companies beats ODDITY Tech on 13 of the 15 factors compared between the two stocks.

About Estee Lauder Companies

The Estée Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, serums, cleansers, toners, body care, exfoliators, acne care and oil correctors, facial masks, and sun care products; and makeup products, such as lipsticks, lip glosses, mascaras, foundations, eyeshadows, and powders, as well as compacts, brushes, and other makeup tools. The company also provides fragrance products in various forms comprising eau de parfum sprays and colognes, as well as lotions, powders, creams, candles, and soaps; and hair care products, including shampoos, conditioners, styling products, treatment, finishing sprays, and hair color products, as well as sells ancillary products and services. It offers its products under the Estée Lauder, Clinique, Origins, M·A·C, Bobbi Brown Cosmetics, La Mer, Aveda, Jo Malone London, TOM FORD, Too Faced, Dr.Jart+, and The Ordinary brands. The company sells its products through department stores, specialty-multi retailers, upscale perfumeries and pharmacies, and salons and spas; freestanding stores; its own and authorized retailer websites; third-party online malls; stores in airports; and duty-free locations. The Estée Lauder Companies Inc. was founded in 1946 and is headquartered in New York, New York.

About ODDITY Tech

Oddity Tech Ltd. operates as a consumer tech company that builds digital-first brands for the beauty and wellness industries in the United States and internationally. It serves consumers worldwide through its AI-driven online platform, which uses data science, machine learning, and computer vision capabilities to identify consumer needs, and develop solutions in the form of beauty and wellness products. The company sells beauty, hair, and skin products under the IL MAKIAGE and SpoiledChild brands. In addition, it operates ODDITY LABS, a biotechnology center, which develops various ingredients, including novel molecules, probiotics, and peptides for beauty and wellness products. Oddity Tech Ltd. was incorporated in 2013 and is headquartered in Tel Aviv, Israel.