Monster Beverage (NASDAQ:MNST) and The Estée Lauder Companies (NYSE:EL) are both large-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.
Profitability
This table compares Monster Beverage and The Estée Lauder Companies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Monster Beverage | 26.99% | 28.24% | 22.80% |
The Estée Lauder Companies | 4.38% | 32.72% | 7.91% |
Volatility & Risk
Monster Beverage has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, The Estée Lauder Companies has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.
Valuation and Earnings
This table compares Monster Beverage and The Estée Lauder Companies' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Monster Beverage | $4.20 billion | 11.08 | $1.11 billion | $2.03 | 43.45 |
The Estée Lauder Companies | $14.29 billion | 6.32 | $684 million | $4.12 | 60.64 |
Monster Beverage has higher earnings, but lower revenue than The Estée Lauder Companies. Monster Beverage is trading at a lower price-to-earnings ratio than The Estée Lauder Companies, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for Monster Beverage and The Estée Lauder Companies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Monster Beverage | 0 | 5 | 12 | 0 | 2.71 |
The Estée Lauder Companies | 1 | 5 | 14 | 0 | 2.65 |
Monster Beverage currently has a consensus target price of $92.5556, suggesting a potential upside of 4.94%. The Estée Lauder Companies has a consensus target price of $242.3478, suggesting a potential downside of 2.99%. Given Monster Beverage's stronger consensus rating and higher possible upside, equities research analysts plainly believe Monster Beverage is more favorable than The Estée Lauder Companies.
Insider and Institutional Ownership
63.6% of Monster Beverage shares are owned by institutional investors. Comparatively, 55.0% of The Estée Lauder Companies shares are owned by institutional investors. 10.6% of Monster Beverage shares are owned by insiders. Comparatively, 14.0% of The Estée Lauder Companies shares are owned 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.
Summary
Monster Beverage beats The Estée Lauder Companies on 8 of the 14 factors compared between the two stocks.