Reviewing ODDITY Tech (NASDAQ:ODD) and Estee Lauder Companies (NYSE:EL)

ODDITY Tech (NASDAQ:ODD) and Estee Lauder Companies (NYSE:EL) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Analyst Recommendations

This is a summary of recent ratings and target prices for ODDITY Tech and Estee Lauder Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ODDITY Tech	3	10	0	1	1.93
Estee Lauder Companies	1	14	11	2	2.50

ODDITY Tech presently has a consensus target price of $22.35, suggesting a potential upside of 3.00%. Estee Lauder Companies has a consensus target price of $110.31, suggesting a potential downside of 2.52%. Given ODDITY Tech’s higher possible upside, equities analysts clearly believe ODDITY Tech is more favorable than Estee Lauder Companies.

Insider and Institutional Ownership

35.9% of ODDITY Tech shares are owned by institutional investors. Comparatively, 55.1% of Estee Lauder Companies shares are owned by institutional investors. 11.5% of Estee Lauder Companies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares ODDITY Tech and Estee Lauder Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ODDITY Tech	2.23%	2.58%	0.80%
Estee Lauder Companies	2.41%	26.99%	5.42%

Risk and Volatility

ODDITY Tech has a beta of 2.14, suggesting that its stock price is 114% more volatile than the S&P 500. Comparatively, Estee Lauder Companies has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Earnings & Valuation

This table compares ODDITY Tech and Estee Lauder Companies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ODDITY Tech	$809.84 million	1.54	$110.75 million	$0.24	90.42
Estee Lauder Companies	$15.05 billion	2.72	$182.00 million	$1.00	113.16

Estee Lauder Companies has higher revenue and earnings than ODDITY Tech. ODDITY Tech is trading at a lower price-to-earnings ratio than Estee Lauder Companies, indicating that it is currently the more affordable of the two stocks.

Summary

Estee Lauder Companies beats ODDITY Tech on 13 of the 15 factors compared between the two stocks.

About ODDITY Tech

Oddity Tech Ltd. operates as a consumer tech company that builds digital-first brands for the beauty and wellness industries in the United States and internationally. It serves consumers worldwide through its AI-driven online platform, which uses data science, machine learning, and computer vision capabilities to identify consumer needs, and develop solutions in the form of beauty and wellness products. The company sells beauty, hair, and skin products under the IL MAKIAGE and SpoiledChild brands. In addition, it operates ODDITY LABS, a biotechnology center, which develops various ingredients, including novel molecules, probiotics, and peptides for beauty and wellness products. Oddity Tech Ltd. was incorporated in 2013 and is headquartered in Tel Aviv, Israel.

About Estee 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.