Estee Lauder Companies Inc (EL)vsTarget Corporation (TGT)
EL
Estee Lauder Companies Inc
$94.47
-0.94%
CONSUMER DEFENSIVE · Cap: $33.80B
TGT
Target Corporation
$157.45
+0.83%
CONSUMER DEFENSIVE · Cap: $70.99B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 616% more annual revenue ($107.70B vs $15.05B). TGT leads profitability with a 4.1% profit margin vs 1.2%. TGT appears more attractively valued with a PEG of 1.98. TGT earns a higher WallStSmart Score of 66/100 (B-).
EL
Hold37
out of 100
Grade: F
TGT
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+29.8%
Fair Value
$150.05
Current Price
$94.47
$55.58 discount
Margin of Safety
+5.3%
Fair Value
$121.04
Current Price
$157.45
$36.41 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
No standout strengths identified
Earnings expanding 100.5% YoY
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Attractively priced relative to earnings
Generating 2.4B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 9.0x book value
ROE of 4.8% — below average capital efficiency
1.2% margin — thin
Expensive relative to growth rate
4.1% margin — thin
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : EL
EL has a balanced fundamental profile.
Bull Case : TGT
The strongest argument for TGT centers on EPS Growth, Market Cap, Return on Equity.
Bear Case : EL
The primary concerns for EL are PEG Ratio, Price/Book, Return on Equity. A P/E of 186.9x leaves little room for execution misses. Debt-to-equity of 2.43 is elevated, increasing financial risk.
Bear Case : TGT
The primary concerns for TGT are PEG Ratio, Profit Margin, Debt/Equity. Thin 4.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
EL carries more volatility with a beta of 1.27 — expect wider price swings.
EL is growing revenue faster at 6.3% — sustainability is the question.
TGT generates stronger free cash flow (2.4B), providing more financial flexibility.
Monitor HOUSEHOLD & PERSONAL PRODUCTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TGT scores higher overall (66/100 vs 37/100). EL offers better value entry with a 29.8% 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 →Target Corporation
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.
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