ELF vs. EL: Which Has a Prettier Outlook?

Core Insights - The earnings season for Q4 2025 is ongoing, featuring notable companies like e.l.f. Beauty (ELF) and Estee Lauder (EL) [1] - There is a significant performance disparity between ELF and EL, with ELF shares down 4.4% over the past year, while EL has gained nearly 70% [2] Quarterly Estimates - The Zacks Consensus EPS estimate for Estee Lauder is $0.83, indicating a 33% year-over-year growth, while ELF's estimate is $0.73, reflecting a 1.2% decline from the previous year [2] - Sales forecasts show ELF expected to grow 30% year-over-year, compared to EL's anticipated 5% growth [5] Profitability and Performance - Estee Lauder has a more favorable profitability outlook, with stronger margins compared to ELF, which has experienced a growth cooldown affecting its stock performance [10][6] - Despite ELF's strong sales growth, the overall sentiment has been negative due to the cooldown in growth [9] Competitive Positioning - Estee Lauder's diversified product portfolio across various beauty categories provides a more stable business model compared to ELF, which is primarily focused on high-growth makeup products [13] - Estee Lauder holds a Zacks Rank of 2 (Buy), while e.l.f. Beauty is ranked 3 (Hold), indicating a more favorable outlook for EL [4][6] - EL shares offer a dividend yield of 1.2%, slightly higher than the S&P 500's yield of 1.1% [14]