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Updated 2026-05-07
The Estée Lauder Companies Inc. (EL) vs The Hershey Company (HSY): Stock Comparison 2026
Quick verdict: EL vs HSY in 2026
The Hershey Company (HSY) exhibits a stronger overall financial profile in this EL vs HSY stock comparison 2026, leading in growth, value, and profitability metrics. While The Estée Lauder Companies Inc. (EL) garners a higher percentage of “Buy” ratings from analysts, HSY demonstrates substantial upside according to discounted cash flow analysis. HSY also offers a slightly higher dividend yield, making it an appealing option across multiple investor profiles, though analyst price targets show identical percentage upside for both. Not investment advice.
Best for Value: HSY
Best for Income: HSY
EL vs HSY: key metrics side by side
Full side-by-side comparison of EL and HSY across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-07.
| Metric | EL | HSY |
|---|---|---|
| Revenue (TTM) | $14.29B | $11.69B |
| Revenue growth YoY | -8.5% | 4.4% HSY wins |
| Gross margin | 73.4% EL wins | 34.76% |
| Net margin | -1.67% | 9.12% HSY wins |
| EBITDA margin | 10.86% | 16.98% HSY wins |
| ROE | N/A% | N/A% |
| FCF yield | 4.15% | 5.83% HSY wins |
| P/E ratio | -125.31x EL wins | 33.31x |
| P/B ratio | 7.78x | 7.7x |
| Debt / equity | 2.33x | 1.13x HSY wins |
| Dividend yield | 0.02% | 0.03% HSY wins |
| Buy rating % | 43.5% EL wins | 22.9% |
| Analyst consensus | Hold | Hold |
| Price target upside | +20.7% | +20.7% |
| DCF upside | -58.2% | +123.5% HSY wins |
| FMP rating | D+ | B+ |
EL vs HSY valuation comparison
When considering EL vs HSY valuation, the picture for The Estée Lauder Companies Inc. (EL) is complex. EL currently reports a negative P/E ratio of -125.31x, which signifies that the company is operating at a loss. This makes a direct, meaningful comparison with The Hershey Company’s (HSY) positive P/E of 33.31x difficult. HSY’s P/E, while representing a premium for its consistent earnings, is at least based on positive profitability. Both companies trade at a relatively high Price-to-Book ratio, with EL at 7.78x and HSY very similar at 7.7x, suggesting that investors are paying a premium over their net asset value.
A deeper dive into intrinsic value reveals a significant divergence. The Discounted Cash Flow (DCF) model indicates that EL is currently overvalued, with a potential downside of -58.2% from its current price. In stark contrast, HSY’s DCF suggests a considerable undervaluation, presenting an impressive potential upside of +123.5%. This wide gap in DCF analysis points to HSY as potentially the more attractive option from a pure valuation perspective, especially for those looking for significant intrinsic value appreciation. This analysis highlights crucial differences in the EL vs HSY fundamentals and valuation.
EL vs HSY growth comparison
In the EL vs HSY growth comparison, The Hershey Company (HSY) demonstrates significantly stronger momentum. HSY recorded a positive year-over-year revenue growth of 4.4%, indicating healthy expansion in its core business. This contrasts sharply with The Estée Lauder Companies Inc. (EL), which experienced a revenue contraction of -8.5%. EL’s negative growth rate suggests challenges in its market segments or execution, making HSY the clear leader in terms of top-line expansion and market demand for its products as of 2026-05-07.
Beyond revenue, profitability metrics also offer insight into the quality of growth. HSY boasts a robust EBITDA margin of 16.98%, significantly higher than EL’s 10.86%. While EL currently has a higher gross margin at 73.4% compared to HSY’s 34.76%, HSY’s ability to translate revenue into stronger EBITDA and positive net income indicates more efficient operations and a more sustainable growth trajectory. Investors focused on consistent and positive growth should note HSY’s superior performance in these areas, crucial for a long-term EL vs HSY stock comparison 2026.
EL vs HSY profitability
When analyzing EL vs HSY profitability, The Hershey Company (HSY) stands out as the significantly more profitable enterprise. HSY achieved a net margin of 9.12%, demonstrating its effective cost management and strong pricing power within the confectionery and snack industry. Conversely, The Estée Lauder Companies Inc. (EL) reported a negative net margin of -1.67%, indicating that it is currently operating at a loss, a key factor weighing on its financial performance. This substantial difference in net profitability underscores HSY’s superior ability to convert revenue into actual earnings for shareholders.
Furthermore, HSY also outperforms EL in terms of operational efficiency as reflected in their EBITDA margins. HSY’s EBITDA margin of 16.98% is considerably higher than EL’s 10.86%. Both companies show “N/A%” for Return on Equity (ROE), preventing a direct comparison on that specific metric. However, HSY’s Free Cash Flow (FCF) yield of 5.83% surpasses EL’s 4.15%, indicating that HSY generates more cash relative to its market capitalization, providing greater financial flexibility and potential for future investments or shareholder returns. This comprehensive view on profitability strengthens HSY’s position in the EL vs HSY stock comparison 2026.
Analyst ratings: EL vs HSY
Considering analyst ratings for EL vs HSY, The Estée Lauder Companies Inc. (EL) garners a higher proportion of “Buy” recommendations from the analyst community. Out of 46 analysts covering EL, 43.5% have a Buy rating on the stock. Their consensus price target for EL is $103.46, representing an impressive potential upside of +20.7% from its current price of $85.685. Despite the higher percentage of Buy ratings, the overall consensus for EL among analysts remains a “Hold.”
The Hershey Company (HSY), covered by 35 analysts, shows a lower percentage of “Buy” ratings at 22.9%. However, analysts still project a strong future for HSY, with a consensus price target of $221.5, which also implies a +20.7% upside from its current price of $183.47. Similar to EL, the overall analyst consensus for HSY is a “Hold.” While both stocks share the same potential upside based on analyst targets, EL appears to be slightly more favored by analysts in terms of conviction for a “Buy” recommendation, offering a nuanced perspective on EL vs HSY stock comparison 2026.
Should I buy EL or HSY stock in 2026?
For investors prioritizing growth in 2026, HSY appears to be the more compelling option in this EL vs HSY stock comparison 2026. The Hershey Company has demonstrated positive revenue growth of 4.4% year-over-year, alongside robust EBITDA and net margins, signaling a healthy and expanding business. In contrast, The Estée Lauder Companies Inc. is grappling with a revenue decline of -8.5% and negative net margins, suggesting headwinds that could hinder immediate growth prospects. HSY’s operational strength and market momentum make it a stronger candidate for growth-oriented portfolios.
When it comes to value investing, HSY again presents a more attractive profile. Its Discounted Cash Flow (DCF) analysis suggests a significant undervaluation, with an upside potential of +123.5%. While EL’s DCF indicates a considerable overvaluation at -58.2%, HSY’s P/E ratio of 33.31x, though higher, is based on positive earnings, unlike EL’s negative P/E of -125.31x, which reflects current losses. For those looking for intrinsic value and a sounder financial footing based on EL vs HSY fundamentals and valuation, HSY appears to offer a better opportunity.
For income-focused investors, both companies offer modest dividends, but HSY has a slight edge. The Hershey Company provides a dividend yield of 0.03%, marginally higher than The Estée Lauder Companies Inc.’s 0.02%. While neither stock is a high-yield play, HSY’s superior profitability and free cash flow generation (FCF yield of 5.83% vs. EL’s 4.15%) suggest a more sustainable dividend over the long term. Therefore, if the question is “should I buy EL or HSY stock 2026” for a blend of growth, value, and a small income component, HSY generally offers a more robust investment thesis. This is not investment advice.
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FAQ: EL vs HSY
Is EL or HSY a better stock in 2026?
HSY generally shows a stronger financial position with a positive P/E of 33.31x, consistent revenue growth of 4.4%, and solid profitability. EL, on the other hand, reports a negative P/E of -125.31x due to losses and a revenue decline of -8.5%. While EL has a higher analyst buy rating percentage at 43.5% compared to HSY’s 22.9%, HSY’s fundamental metrics and DCF valuation suggest a more favorable outlook. This is not investment advice.
Which has more analyst upside — EL or HSY?
EL’s consensus price target is $103.46, representing a potential upside of +20.7%. HSY’s consensus price target is $221.5, also indicating a potential upside of +20.7%. As of 2026-05-07, analysts project an identical percentage upside for both stocks. Not a prediction by Alert Invest.
Which is growing faster — EL or HSY?
EL reported a revenue growth of -8.5% year-over-year, while HSY showed a positive revenue growth of 4.4% year-over-year. HSY clearly has stronger momentum in terms of revenue expansion.
Which is more profitable — EL or HSY?
EL’s net margin is -1.67%, and its ROE is N/A%. HSY’s net margin is 9.12%, and its ROE is N/A%. HSY is significantly more profitable, operating with a positive net margin compared to EL’s losses.
Do EL or HSY pay dividends?
Yes, both companies pay dividends. EL has a dividend yield of 0.02%, while HSY has a slightly higher dividend yield of 0.03%.
For informational purposes only. Not investment advice. Data: Financial Modeling Prep & SEC EDGAR. Always do your own research.