Can Procter & Gamble Outrun Estee Lauder Companies in the Next Rally?
Estee Lauder Companies surged 23% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Procter & Gamble gives you more. Procter & Gamble (PG) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Estee Lauder Companies (EL) stock, suggesting you may be better off investing in PG
- PG’s quarterly revenue growth was 3.0%, vs. EL’s -11.9%.
- In addition, its Last 12 Months revenue growth came in at 1.2%, ahead of EL’s -8.2%.
- PG leads on profitability over both periods – LTM margin of 24.1% and 3-year average of 23.6%.
These differences become even clearer when you look at the financials side by side. The table highlights how EL’s fundamentals stack up against those of PG on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| EL | PG | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 33.3 | 16.9 | PG |
| Revenue Growth | |||
| Last Quarter | -11.9% | 3.0% | PG |
| Last 12 Months | -8.2% | 1.2% | PG |
| Last 3 Year Average | -6.8% | 1.8% | PG |
| Operating Margins | |||
| Last 12 Months | 8.0% | 24.1% | PG |
| Last 3 Year Average | 9.7% | 23.6% | PG |
| Momentum | |||
| Last 3 Year Return | -53.8% | 6.0% | PG |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: EL Revenue Comparison | PG Revenue Comparison
See more margin details: EL Operating Income Comparison | PG Operating Income Comparison
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- Why PG Could Outperform Estee Lauder Companies Stock
- PG Looks Smarter Buy Than Estee Lauder Companies Stock
- Pay Less, Gain More: PG Tops Estee Lauder Companies Stock
- Estee Lauder Companies Stock To $73?
See detailed fundamentals on Buy or Sell PG Stock and Buy or Sell EL Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| EL Return | 30% | 40% | -32% | -40% | -48% | 42% | -45% | ||
| PG Return | 14% | 21% | -5% | -1% | 17% | -11% | 35% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 14% | 108% | <=== | |
| Monthly Win Rates [3] | |||||||||
| EL Win Rate | 58% | 75% | 33% | 42% | 42% | 50% | 50% | ||
| PG Win Rate | 67% | 67% | 33% | 50% | 75% | 25% | 53% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 73% | 65% | <=== | |
| Max Drawdowns [4] | |||||||||
| EL Max Drawdown | -30% | -11% | -48% | -57% | -56% | -33% | -39% | ||
| PG Max Drawdown | -21% | -12% | -23% | -9% | 0% | -15% | -13% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 12/17/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read EL Dip Buyer Analyses to see how the stock has fallen and recovered in the past.
Still not sure about EL or PG? Consider portfolio approach.
Portfolios Win When Stock Picks Fall Short
Individual picks can be volatile but staying invested is what matters. A diversified portfolio helps you stay the course, capture upside and reduce downside
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.