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Compare Stocks › EL vs JNJ

The Estée Lauder Companies Inc. (EL) vs Johnson & Johnson (JNJ)

EL
The Estée Lauder Companies Inc.
$85.60
VS
JNJ
Johnson & Johnson
$237.60

Rewards

EL
  • ★Gross margin of 74.3% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
JNJ
  • ★Johnson & Johnson has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Gross margin of 68.1% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Johnson & Johnson scores 90/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.

Risks

EL
  • ⚠ROIC has declined by 14.4 percentage points over the observed period, which may signal competitive erosion.
  • ⚠Despite buyback spending, shares outstanding increased in 3 out of 4 years — stock-based compensation is offsetting repurchases.
  • ⚠FCF yield of 5.5% suggests reasonable valuation assuming continued moderate growth.
JNJ
  • ⚠FCF yield of 2.9% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
  • ⚠7 insider sales totaling $58.4M with no purchases in the past 3 months — insiders are reducing their exposure.

Key Valuation Metrics

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EL
JNJ
Valuation
$1.70B
Free Cash Flow
$16.63B
5.47%
FCF Yield
2.90%
N/A
Trailing P/E
21.56
28.23
Forward P/E
18.90
Quality & Moat
12.31%
ROIC
13.63%
-28.11%
ROE
32.87%
74.32%
Gross Margin
68.08%
N/A
PEG Ratio
0.44
Balance Sheet Safety
2.33
Debt / Equity
0.60
N/A
Interest Coverage
N/A
2.86
Net Debt / EBITDA
0.86
1.64%
Dividend Yield
2.19%
EL: 2Ties: 1JNJ: 7
ELJNJ

Historical Fundamentals

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EL

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

JNJ

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

$1 Retained Earnings Test

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EL
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-2.23B
Δ Market Cap
$-50.91B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
JNJ
$0.91
created per $1 retained over 3 years
Mediocre Allocator
Σ Retained
$40.05B
Δ Market Cap
+$36.63B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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EL
73.5% Margin of Safety
Price is 73.5% below estimated fair value
Current Price: $85.60
Fair Value: $323.24
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
JNJ
2.9% Margin of Safety
Price is 2.9% below estimated fair value
Current Price: $237.60
Fair Value: $244.77
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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EL

What growth rate is the market pricing in at $86?

+9.0%
Market-Implied FCF Growth Rate

Market pricing in significantly higher growth than history — aggressive.

JNJ

What growth rate is the market pricing in at $238?

+9.3%
Market-Implied Owner Earnings Growth
Standard FCF implies +15.8%

The market implies +9.3% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +15.8%, reflecting heavy growth investment expected to generate future returns.

Economic Moat Score

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EL
36/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though revenue predictability shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
JNJ
90/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.

Forensic Accounting

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EL
-3.21
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
JNJ
-2.31
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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EL
Insiders 1.6%Institutions 95.9%Retail & Other 2.6%
No. of Institutional Holders1,345
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
JNJ
Insiders 0.1%Institutions 75.8%Retail & Other 24.2%
No. of Institutional Holders5,544
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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EL
0
Buys (3M)
0
Buys (12M)
FRIBOURG PAUL J
Director
$2.96M
@ $65.00 · 2025-02-07
FRIBOURG PAUL J
Director
$5.72M
@ $65.80 · 2025-02-06
SHRIVASTAVA AKHIL
Chief Financial Officer
$46,053
@ $65.79 · 2025-02-05
FRIBOURG PAUL J
Director
$5.02M
@ $64.48 · 2024-11-19
FRIBOURG PAUL J
Director
$9.86M
@ $64.46 · 2024-11-18
SHRIVASTAVA AKHIL
Chief Financial Officer
$65,000
@ $65.00 · 2024-11-14
FRIBOURG PAUL J
Director
$10.05M
@ $63.98 · 2024-11-14
Open market purchases · includes direct & indirect ownership · excludes option exercises
JNJ
0
Buys (3M)
1
Buys (12M)
Total value (12M): $257,688
MORIKIS JOHN G
Director
$257,688
@ $206.15 · 2025-11-26
WEINBERGER MARK A
Director
$147,220
@ $147.22 · 2024-12-12
WOODS EUGENE A
Director
$14,553
@ $145.53 · 2024-04-30
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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EL
0
Sells (3M)
10
Sells (12M)
Total value (12M): $1.02B
LA LANDE RASHIDA K
General Counsel
$151,498
@ $94.45 · 2025-11-26
LAUDER JANE A
Director and Beneficial Owner of more than 10% of a Class of Security
$1.68M
@ $94.38 · 2025-11-26
WEBSTER MERIDITH P
Officer
$476,971
@ $87.84 · 2025-11-18
STERNLICHT BARRY S
Director
$364,749
@ $91.83 · 2025-11-11
LAL 2015 ELF TRUST
Trustee
$508.60M
@ $89.70 · 2025-11-06
EVELYN H. LAUDER 2012 MARITAL TRUST TWO
Trustee
$255.22M
@ $89.70 · 2025-11-06
LEONARD A LAUDER 2013 REVOCABLE TRUST
Beneficial Owner of more than 10% of a Class of Security
$249.91M
@ $89.70 · 2025-11-06
FORESTER LYNN
Director
$339,288
@ $91.65 · 2025-08-29
LA LANDE RASHIDA K
General Counsel
$589,594
@ $91.88 · 2025-08-28
LAUDER JANE A
Director and Beneficial Owner of more than 10% of a Class of Security
$1.39M
@ $88.23 · 2025-08-21
FREDA FABRIZIO
Chief Executive Officer
$743,259
@ $67.76 · 2024-11-01
FORESTER LYNN
Director
$364,143
@ $93.61 · 2024-08-23
LAUDER JANE A
Officer, Director and Beneficial Owner
$1.82M
@ $121.26 · 2024-05-30
JUEPTNER PETER
Officer
$1.67M
@ $130.62 · 2024-05-22
TRAVIS TRACEY THOMAS
Chief Financial Officer
$1.97M
@ $135.73 · 2024-05-15
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
JNJ
7
Sells (3M)
12
Sells (12M)
Total value (12M): $101.23M
DECKER ROBERT J
Officer
$1.01M
@ $247.87 · 2026-02-27
SCHMID TIMOTHY
Officer
$324,763
@ $245.66 · 2026-02-20
SCHMID TIMOTHY
Officer
$5.53M
@ $244.33 · 2026-02-18
WOLK JOSEPH J
Chief Financial Officer
$21.77M
@ $242.80 · 2026-02-17
SWANSON JAMES D
Chief Technology Officer
$15.11M
@ $243.39 · 2026-02-17
BROADHURST VANESSA
Officer
$1.51M
@ $243.39 · 2026-02-17
REED JOHN C
Officer
$13.11M
@ $243.00 · 2026-02-17
REED JOHN C
Officer
$4.19M
@ $192.71 · 2025-10-17
TAUBERT JENNIFER L
Officer
$10.04M
@ $177.81 · 2025-09-04
DUATO JOAQUIN BOIX
Chief Executive Officer
$22.55M
@ $179.21 · 2025-08-22
WOLK JOSEPH J
Chief Financial Officer
$2.98M
@ $176.91 · 2025-08-15
REED JOHN C
Officer
$3.13M
@ $163.55 · 2025-07-17
DECKER ROBERT J
Officer
$1.16M
@ $165.88 · 2025-02-25
SCHMID TIMOTHY
Officer
$62,928
@ $156.15 · 2025-02-18
WOLK JOSEPH J
Chief Financial Officer
$2.00M
@ $153.89 · 2025-02-07
DECKER ROBERT J
Officer
$930,113
@ $165.06 · 2024-08-30
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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EL
FearGreed
😨Fear(33/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
JNJ
FearGreed
😐Neutral(59/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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EL
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Fear (33)
JNJ
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (59)
View EL Full AnalysisView JNJ Full Analysis