Critical Analysis: Estée Lauder Companies (NYSE:EL) & Sentient Brands (OTC:SNBH)

Estée Lauder Companies (NYSE:EL) and Sentient Brands (OTC:SNBH) are both consumer defensive companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Institutional and Insider Ownership

55.2% of Estée Lauder Companies shares are owned by institutional investors. 12.8% of Estée Lauder Companies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Estée Lauder Companies and Sentient Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Estée Lauder Companies	2.50%	16.91%	4.14%
Sentient Brands	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Estée Lauder Companies and Sentient Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Estée Lauder Companies	0	15	8	0	2.35
Sentient Brands	0	0	0	0	N/A

Estée Lauder Companies presently has a consensus price target of $117.36, suggesting a potential upside of 33.99%. Given Estée Lauder Companies’ higher probable upside, equities research analysts plainly believe Estée Lauder Companies is more favorable than Sentient Brands.

Earnings & Valuation

This table compares Estée Lauder Companies and Sentient Brands”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Estée Lauder Companies	$15.61 billion	2.01	$390.00 million	$1.78	49.21
Sentient Brands	N/A	N/A	N/A	N/A	N/A

Estée Lauder Companies has higher revenue and earnings than Sentient Brands.

Summary

Estée Lauder Companies beats Sentient Brands on 8 of the 8 factors compared between the two stocks.

About Estée 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.

About Sentient Brands

Sentient Brands Holdings Inc., a product development and brand management company, builds innovative brands in the luxury and premium market space. It offers CBD luxury skin care and lifestyle products, such as purifying exfoliator, replenishing facial oil, ultra-nourishing face cream, and revitalizing eye cream under the Oeuvre brand through direct-to consumer online e-commerce platform and wholesale partners. The company was formerly known as Intelligent Buying, Inc. and changed its name to Sentient Brands Holdings Inc. in March 2021. Sentient Brands Holdings Inc. was founded in 2002 and is based in New York, New York.