Estee Lauder Companies Inc (EL), International Flavors & Fragrances Inc (IFF): What Is the Most Beautiful Investment of Them All?

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While it’s certainly not recommended above Estee Lauder Companies Inc (NYSE:EL) or IFF, Avon Products, Inc. (NYSE:AVP) does have future potential thanks to its overseas growth. In the second quarter, for example, revenue in EMEA (Europe, Middle East, and Africa) increased 2%; this was mostly due to having more active reps in the region. Revenue also trickled higher by 1% in Latin America. That said, the United Kingdom, South Africa, and Asia-Pacific have been weak, with revenue declines of 5%, 11%, and 9%, respectively.

While Avon Products, Inc. (NYSE:AVP) is seeing declining revenues in Beauty (4%) and Fashion (4%), it is seeing a 13% revenue increase in its Home segment. Other positives include lower freight costs, a higher gross margin, reduced ad expenses, and lower profit fees.

Avon Products, Inc. (NYSE:AVP) currently yields 1.10%, but its debt-to-equity ratio of 2.56 is concerning. The company also sports a negative net margin of 1.06%.

Conclusion

Of the three companies mentioned, Avon Products, Inc. (NYSE:AVP) is facing the most headwinds. While there is upside potential, better options exist. International Flavors & Fragrances Inc (NYSE:IFF) is a highly innovative and well-managed company, positives that should lead to good long-term results. If forced to select the best investment option of the group, however, it would be Estee Lauder Companies Inc (NYSE:EL). This is thanks to its brand recognition, product and geographic diversification, quality debt management, and international expansion.

That said, it should be noted that none of these stocks should be looked at as defensive plays if you’re concerned about a market correction.

Dan Moskowitz has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article What Is the Most Beautiful Investment of Them All? originally appeared on Fool.com.

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