Estee Lauder Companies Inc (EL)vsThe Coca-Cola Company (KO)
EL
Estee Lauder Companies Inc
$75.69
-1.83%
CONSUMER DEFENSIVE · Cap: $27.38B
KO
The Coca-Cola Company
$78.87
-0.14%
CONSUMER DEFENSIVE · Cap: $339.28B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 236% more annual revenue ($49.28B vs $14.67B). KO leads profitability with a 27.8% profit margin vs -1.2%. EL appears more attractively valued with a PEG of 1.43. KO earns a higher WallStSmart Score of 65/100 (B-).
EL
Hold43
out of 100
Grade: D
KO
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+35.3%
Fair Value
$162.86
Current Price
$75.69
$87.17 discount
Margin of Safety
-22.8%
Fair Value
$64.14
Current Price
$78.87
$14.73 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Generating 1.0B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Strong operational efficiency at 34.9%
Keeps 28 of every $100 in revenue as profit
Generating 2.9B in free cash flow
Areas to Watch
Distress zone — elevated risk
Weak financial health signals
ROE of -4.3% — below average capital efficiency
Earnings declined 51.6%
Trading at 10.1x book value
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : EL
The strongest argument for EL centers on Free Cash Flow. PEG of 1.43 suggests the stock is reasonably priced for its growth.
Bull Case : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.8% and operating margin at 34.9%. Revenue growth of 12.1% demonstrates continued momentum.
Bear Case : EL
The primary concerns for EL are Altman Z-Score, Piotroski F-Score, Return on Equity. Debt-to-equity of 2.74 is elevated, increasing financial risk.
Bear Case : KO
The primary concerns for KO are Price/Book, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
EL profiles as a turnaround stock while KO is a mature play — different risk/reward profiles.
EL carries more volatility with a beta of 1.25 — expect wider price swings.
KO is growing revenue faster at 12.1% — sustainability is the question.
KO generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
KO scores higher overall (65/100 vs 43/100), backed by strong 27.8% margins and 12.1% revenue growth. EL offers better value entry with a 35.3% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Estee Lauder Companies Inc
CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA
The Estee Lauder Companies Inc. is an American multinational manufacturer and marketer of prestige skincare, makeup, fragrance and hair care products, based in Midtown Manhattan, New York City. The company owns a diverse portfolio of brands, distributed internationally through both digital commerce and retail channels.
Visit Website →The Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
Visit Website →Compare with Other HOUSEHOLD & PERSONAL PRODUCTS Stocks
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