Estee Lauder Companies Inc (EL)vsYum! Brands Inc (YUM)
EL
Estee Lauder Companies Inc
$73.11
+2.28%
CONSUMER DEFENSIVE · Cap: $26.45B
YUM
Yum! Brands Inc
$159.16
-0.17%
CONSUMER CYCLICAL · Cap: $44.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Estee Lauder Companies Inc generates 79% more annual revenue ($14.67B vs $8.21B). YUM leads profitability with a 19.0% profit margin vs -1.2%. EL appears more attractively valued with a PEG of 1.77. YUM earns a higher WallStSmart Score of 59/100 (C).
EL
Hold41
out of 100
Grade: D
YUM
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for EL.
Margin of Safety
+38.8%
Fair Value
$259.74
Current Price
$159.16
$100.58 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Generating 1.0B in free cash flow
Strong operational efficiency at 31.9%
Earnings expanding 27.7% YoY
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
Weak financial health signals
ROE of -4.3% — below average capital efficiency
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : EL
The strongest argument for EL centers on Free Cash Flow.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth. Profitability is solid with margins at 19.0% and operating margin at 31.9%.
Bear Case : EL
The primary concerns for EL are PEG Ratio, Altman Z-Score, Piotroski F-Score. Debt-to-equity of 2.74 is elevated, increasing financial risk.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
EL profiles as a turnaround stock while YUM is a mature play — different risk/reward profiles.
EL carries more volatility with a beta of 1.11 — expect wider price swings.
YUM is growing revenue faster at 6.5% — sustainability is the question.
EL generates stronger free cash flow (1.0B), providing more financial flexibility.
Bottom Line
YUM scores higher overall (59/100 vs 41/100), backed by strong 19.0% margins. Both earn "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 →Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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