Reviewing Estee Lauder Companies (NYSE:EL) and Betterware de Mexico SAPI de C (NYSE:BWMX)

Betterware de Mexico SAPI de C (NYSE:BWMX) and Estee Lauder Companies (NYSE:EL) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Volatility & Risk

Betterware de Mexico SAPI de C has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Estee Lauder Companies has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Betterware de Mexico SAPI de C and Estee Lauder Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Betterware de Mexico SAPI de C	1	1	0	1	2.33
Estee Lauder Companies	2	10	8	1	2.38

Estee Lauder Companies has a consensus target price of $96.95, suggesting a potential upside of 12.67%. Given Estee Lauder Companies’ stronger consensus rating and higher possible upside, analysts clearly believe Estee Lauder Companies is more favorable than Betterware de Mexico SAPI de C.

Dividends

Betterware de Mexico SAPI de C pays an annual dividend of $1.30 per share and has a dividend yield of 7.9%. Estee Lauder Companies pays an annual dividend of $1.40 per share and has a dividend yield of 1.6%. Betterware de Mexico SAPI de C pays out 71.0% of its earnings in the form of a dividend. Estee Lauder Companies pays out -200.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Betterware de Mexico SAPI de C and Estee Lauder Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Betterware de Mexico SAPI de C	8.35%	77.89%	11.28%
Estee Lauder Companies	-1.67%	20.66%	4.15%

Earnings & Valuation

This table compares Betterware de Mexico SAPI de C and Estee Lauder Companies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Betterware de Mexico SAPI de C	$744.00 million	0.82	$55.37 million	$1.83	8.99
Estee Lauder Companies	$14.33 billion	2.17	-$1.13 billion	($0.70)	-122.92

Betterware de Mexico SAPI de C has higher earnings, but lower revenue than Estee Lauder Companies. Estee Lauder Companies is trading at a lower price-to-earnings ratio than Betterware de Mexico SAPI de C, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

12.7% of Betterware de Mexico SAPI de C shares are held by institutional investors. Comparatively, 55.1% of Estee Lauder Companies shares are held by institutional investors. 13.1% of Estee Lauder Companies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Estee Lauder Companies beats Betterware de Mexico SAPI de C on 9 of the 16 factors compared between the two stocks.

About Betterware de Mexico SAPI de C

Betterware de Mexico, S.A.B. de C.V. operates as a direct-to-consumer company in Mexico. The company focuses on the home organization segment with a product portfolio, including home solutions, kitchen and food preservation, technology and mobility, and other categories. It serves approximately 3 million households through distributors and associates in approximately 800 communities throughout Mexico. The company was formerly known as Betterware de México, S.A.P.I. de C.V. Betterware de Mexico, S.A.B. de C.V. was founded in 1995 and is based in Zapopan, Mexico. Betterware de Mexico, S.A.B. de C.V. is a subsidiary of Campalier, S.A. de C.V.

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.