Estée Lauder Companies vs Hershey

Estée Lauder Companies and Hershey are compared to illuminate differences in business models, financial performance, and market context in clear, accessible language. This page presents neutral, balanced analysis of how each company operates, performs, and positions itself within its market. It highlights key drivers, competitive landscape, and strategic priorities without prescribing outcomes. Educational content, not financial advice.

Estée Lauder Companies and Hershey are compared to illuminate differences in business models, financial performance, and market context in clear, accessible language. This page presents neutral, balan...

Comparison Snapshot

Key Financial Metrics

EL

Metric

HSY

$41.94B

Market Cap

$38.52B

-8.76%

Potential Profit

0.35%

Hold

Analyst Rating

Hold

Why It's Moving

Estée Lauder Hits 52-Week High on Strong Q1 Turnaround Momentum

Organic net sales rose 3% in Q1 fiscal 2026, while adjusted operating margin jumped 300 basis points to 7.3%, reflecting sharper execution and profitability gains.
Profit Recovery plan boosted gross margin by 60 basis points to 73.3% through procurement efficiencies and better inventory control, offsetting inflation pressures.
Early January upgrades from research firms and moves like appointing Daisy Edgar-Jones as ambassador highlight multigenerational appeal and product innovation.

Sentiment:

🐃Bullish

Hershey Stock Climbs Amid Valuation Debates as Cocoa Woes Spark Innovation Push.

Stock advanced 6.44% over the past month and 30.10% yearly, outpacing the food products industry's average P/E of 19.26 with Hershey's at 29.31, hinting at expected outperformance.
Company ramps up innovation amid cocoa market turmoil, launching new items like HERSHEY'S Milk Chocolate with Caramel and Reese's Filled Pretzels to sustain demand.
Strategic moves include intent to acquire LesserEvil and executive hires like Chief Growth Officer Stacy Taffet, signaling focus on growth amid commodity pressures.

Sentiment:

🐃Bullish

Estée Lauder Hits 52-Week High on Strong Q1 Turnaround Momentum

Organic net sales rose 3% in Q1 fiscal 2026, while adjusted operating margin jumped 300 basis points to 7.3%, reflecting sharper execution and profitability gains.
Profit Recovery plan boosted gross margin by 60 basis points to 73.3% through procurement efficiencies and better inventory control, offsetting inflation pressures.
Early January upgrades from research firms and moves like appointing Daisy Edgar-Jones as ambassador highlight multigenerational appeal and product innovation.

Sentiment:

🐃Bullish

Hershey Stock Climbs Amid Valuation Debates as Cocoa Woes Spark Innovation Push.

Stock advanced 6.44% over the past month and 30.10% yearly, outpacing the food products industry's average P/E of 19.26 with Hershey's at 29.31, hinting at expected outperformance.
Company ramps up innovation amid cocoa market turmoil, launching new items like HERSHEY'S Milk Chocolate with Caramel and Reese's Filled Pretzels to sustain demand.
Strategic moves include intent to acquire LesserEvil and executive hires like Chief Growth Officer Stacy Taffet, signaling focus on growth amid commodity pressures.

Sentiment:

🐃Bullish

Investment Analysis

Estée Lauder Companies

EL

Pros

Estee Lauder Companies reported a 3.6% year-over-year revenue increase in the latest quarter, beating earnings estimates with $0.32 EPS.
Analysts from JPMorgan Chase and Goldman Sachs have raised price targets and ratings, reflecting positive growth expectations and potential upside near 19%.
The company maintains a solid current ratio of 1.32, indicating reasonable short-term liquidity relative to many peers.

Considerations

The firm had a negative net margin of 7.91%, suggesting profitability challenges despite revenue growth.
Operating profit was negative at -$260.4 million recently, reflecting increased operating expenses and margin pressure.
Estee Lauder carries sizable debt of $7.32 billion, with interest expense impacting net results.

Hershey

HSY

Pros

Hershey maintains a strong current ratio around 1.53, indicating robust liquidity to cover short-term liabilities.
The company benefits from a historically resilient confectionery market with relatively stable demand.
Hershey’s strong brand portfolio and consistent cash flow generation support its financial stability and growth potential.

Considerations

Hershey faces exposure to commodity price volatility, particularly sugar and cocoa, which can pressure margins.
The company operates in a competitive market with risks from new entrants and changing consumer preferences.
Regulatory risks related to health and nutrition trends could impact product demand, requiring costly adaptations.

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