Estée Lauder Companies vs ADM

This page compares Estée Lauder Companies and ADM, detailing their business models, financial performance, and the market context in which they operate. It presents neutral, accessible information about how each company creates value, market positioning, and strategic considerations for readers seeking a high-level view. Educational content, not financial advice.

This page compares Estée Lauder Companies and ADM, detailing their business models, financial performance, and the market context in which they operate. It presents neutral, accessible information abo...

Comparison Snapshot

Key Financial Metrics

EL

Metric

ADM

$39.15B

Market Cap

$33.40B

-1.84%

Potential Profit

-16.14%

Hold

Analyst Rating

Hold

Why It's Moving

EL Stock Warning: Why Analysts See Downside Risk Despite Earnings Beat and Raised Outlook

Q2 EPS hit $0.89, topping $0.83 consensus by 7%, with operating income jumping to $608 million adjusted on PRGP savings funding consumer investments.
Fiscal 2026 guidance lifted to 3-5% sales growth and $2.05-$2.25 EPS, signaling first organic sales rebound in years, but flagged $100 million tariff hit and travel retail weakness.
Analysts mixed: Citigroup upgraded to Buy at $120, but Wells Fargo and JP Morgan cut targets to $105-$121, consensus at $108 with 'Hold' rating amid recent 16% weekly drop.

Sentiment:

🐻Bearish

ADM Stock Warning: Why Analysts See -16% Downside Risk

Q4 adjusted EPS hit $0.87, topping estimates of $0.80, but revenue plunged to $18.56B from $21.5B last year, missing consensus badly.
2026 guidance of $3.60-$4.25 adjusted EPS has the low end well below analyst hopes of $4.24, tied to biofuel policy delays and flat trade.
Key segments tanked: Ag Services & Oilseeds profit down 31% on weak soybean exports and crush margins, while Nutrition dropped 11% amid demand softness.

Sentiment:

🐻Bearish

EL Stock Warning: Why Analysts See Downside Risk Despite Earnings Beat and Raised Outlook

Q2 EPS hit $0.89, topping $0.83 consensus by 7%, with operating income jumping to $608 million adjusted on PRGP savings funding consumer investments.
Fiscal 2026 guidance lifted to 3-5% sales growth and $2.05-$2.25 EPS, signaling first organic sales rebound in years, but flagged $100 million tariff hit and travel retail weakness.
Analysts mixed: Citigroup upgraded to Buy at $120, but Wells Fargo and JP Morgan cut targets to $105-$121, consensus at $108 with 'Hold' rating amid recent 16% weekly drop.

Sentiment:

🐻Bearish

ADM Stock Warning: Why Analysts See -16% Downside Risk

Q4 adjusted EPS hit $0.87, topping estimates of $0.80, but revenue plunged to $18.56B from $21.5B last year, missing consensus badly.
2026 guidance of $3.60-$4.25 adjusted EPS has the low end well below analyst hopes of $4.24, tied to biofuel policy delays and flat trade.
Key segments tanked: Ag Services & Oilseeds profit down 31% on weak soybean exports and crush margins, while Nutrition dropped 11% amid demand softness.

Sentiment:

🐻Bearish

Investment Analysis

Estée Lauder Companies

EL

Pros

Estee Lauder reported a 3.6% year-over-year revenue increase in the recent quarter, indicating steady top-line growth.
The company owns a diverse portfolio of premium beauty brands, including Clinique, La Mer, M.A.C, and The Ordinary, supporting broad market penetration.
Analysts at JPMorgan Chase & Co. and Goldman Sachs have upgraded the stock with higher price targets, signalling positive market sentiment.

Considerations

Estee Lauder currently has a negative net margin of around 7.9%, reflecting profitability challenges despite revenue growth.
Return on equity has dropped significantly recently to negative levels, well below its historical averages, raising concerns on capital efficiency.
The stock faces a $1 billion overhang issue, which could act as a selling pressure and weigh on investor confidence.

ADM

Pros

Archer-Daniels-Midland (ADM) operates globally in diversified agribusiness segments, providing exposure to multiple commodity and food markets.
The company benefits from strong scale and integrated supply chain capabilities, enhancing efficiency and resilience.
ADM is positioned to benefit from rising demand for sustainable food ingredients and biofuels, which are growth drivers in the sector.

Considerations

ADM's earnings and profitability are sensitive to commodity price volatility, which can impact margins unpredictably.
The agribusiness sector faces regulatory risks including environmental and trade policies that may increase operational costs or limit market access.
Cyclical and macroeconomic headwinds, such as inflation and geopolitical tensions, could dampen growth prospects in ADM's key markets.

Related Market Insights

The Celebrity Effect: How Influencer Marketing Drives Retail Stock Success

Discover how influencer marketing drives retail stock success. Learn from American Eagle's Sydney Sweeney campaign & invest in companies leveraging celebrity endorsements.