Analyzing Estée Lauder Companies (NYSE:EL) and PT Unilever Indonesia Tbk (OTCMKTS:UNLRY)

PT Unilever Indonesia Tbk (OTCMKTS:UNLRY) and Estée Lauder Companies (NYSE:EL) are both consumer defensive companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

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 company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

PT Unilever Indonesia Tbk pays an annual dividend of $10,182.91 per share and has a dividend yield of 358,831.3%. Estée Lauder Companies pays an annual dividend of $2.64 per share and has a dividend yield of 3.0%. PT Unilever Indonesia Tbk pays out 73.1% of its earnings in the form of a dividend. Estée Lauder Companies pays out 148.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PT Unilever Indonesia Tbk is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares PT Unilever Indonesia Tbk and Estée Lauder Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PT Unilever Indonesia Tbk	N/A	N/A	N/A
Estée Lauder Companies	2.50%	16.91%	4.14%

Analyst Ratings

This is a breakdown of current recommendations and price targets for PT Unilever Indonesia Tbk and Estée Lauder Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PT Unilever Indonesia Tbk	0	0	0	0	N/A
Estée Lauder Companies	0	15	8	0	2.35

Estée Lauder Companies has a consensus target price of $117.36, indicating a potential upside of 31.44%. Given Estée Lauder Companies’ higher possible upside, analysts clearly believe Estée Lauder Companies is more favorable than PT Unilever Indonesia Tbk.

Earnings & Valuation

This table compares PT Unilever Indonesia Tbk and Estée Lauder Companies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PT Unilever Indonesia Tbk	N/A	N/A	N/A	$13,921.51	0.00
Estée Lauder Companies	$15.61 billion	2.05	$390.00 million	$1.78	50.16

Estée Lauder Companies has higher revenue and earnings than PT Unilever Indonesia Tbk. PT Unilever Indonesia Tbk is trading at a lower price-to-earnings ratio than Estée Lauder Companies, indicating that it is currently the more affordable of the two stocks.

Summary

Estée Lauder Companies beats PT Unilever Indonesia Tbk on 9 of the 12 factors compared between the two stocks.

About PT Unilever Indonesia Tbk

PT Unilever Indonesia Tbk manufactures, markets, and distributes consumer goods in Indonesia. It offers soaps, detergents, dairy based foods, ice creams, savories, soy sauce, cosmetic products, tea-based beverages, and fruit juices. The company provides its products under the Axe, Bango, Buavita, Cif, Citra, Clear, Clear Men, Close Up, Cornetto, Dove, Feast, Feast, Glow & Lovely, Hellmann's, Jawara, Knorr, Lifebuoy, Lipton, Love Beauty & Planet, Lux, Magnum, Molto, Paddle Pop, Pepsodent, Pond's, Pond's Men, Populaire, Rexona, Rinso, Royco, SariWangi, Seru, Simple, St. Ives, Suave, Sunlight, Sunsilk, Superpell, TRESemmé, The Vegetarian Butcher, Unilever Professional, Vaseline Men, Viennetta, Vixal, Wall's, Wipol, Zwitsalm, and other brands. It also leases office space. PT Unilever Indonesia Tbk was founded in 1933 and is headquartered in Tangerang, Indonesia. PT Unilever Indonesia Tbk operates as a subsidiary of Unilever PLC.

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.