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

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

Volatility and Risk

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

Insider & Institutional Ownership

55.1% of Estee Lauder Companies shares are held by institutional investors. 29.0% of Yatsen shares are held by insiders. Comparatively, 11.5% 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 will outperform the market over the long term.

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%

Analyst Ratings

This is a breakdown of current ratings for Yatsen and Estee Lauder Companies, as provided by MarketBeat.

	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 price target of $110.31, suggesting a potential downside of 2.52%. Given Estee Lauder Companies’ stronger consensus rating and higher probable upside, analysts clearly believe Estee Lauder Companies is more favorable than Yatsen.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yatsen	$614.62 million	0.30	-$11.56 million	($0.32)	-6.16
Estee Lauder Companies	$15.05 billion	2.72	$182.00 million	$1.00	113.16

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.

Summary

Estee Lauder Companies beats Yatsen on 13 of the 14 factors compared between the two stocks.

About Yatsen

Yatsen Holding Limited, together with its subsidiaries, engages in the development and sale of beauty products under the Perfect Diary, Little Ondine, Pink Bear, Abby’s Choice, GalÃnic, DR.WU, Eve Lom, and EANTiM brands in the People’s Republic of China. The company offers color cosmetics for lips, eyes, and face; skin care products, including face serums and creams, eye creams, masks, toners, makeup removers, cleansers, ampoules, and anti-acne patches; and beauty tools and kits, sunscreen products, and beauty devices. It sells its products through stores and online channel. The company was formerly known as Mangrove Bay Ecommerce Holding (Cayman) and changed its name to Yatsen Holding Limited in January 2019. Yatsen Holding Limited was founded in 2016 and is headquartered in Guangzhou, China.

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.