In the competitive world of household and personal products, Coty Inc. and Edgewell Personal Care Company stand out as key players with distinct market approaches. Coty focuses on prestige beauty and mass cosmetics, while Edgewell covers a broad range of personal care, from shaving to skin and feminine care. This article explores their industry overlap and innovation strategies to help you decide which company is the smarter choice for your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between Coty and Edgewell Personal Care by providing an overview of these two companies and their main differences.
Coty Overview
Coty Inc. operates in the household and personal products industry, focusing on manufacturing, marketing, and distributing beauty products worldwide. The company offers a wide range of prestige fragrances, skin care, and color cosmetics through various retailers and direct channels. Coty serves approximately 150 countries and is known for brands like Calvin Klein, Gucci, and CoverGirl.
Edgewell Personal Care Overview
Edgewell Personal Care Company manufactures and markets personal care products globally, operating through segments such as Wet Shave, Sun and Skin Care, and Feminine Care. It offers brands like Schick razors, Banana Boat sun care, and Playtex feminine products. Established in 1772 and headquartered in Shelton, CT, Edgewell emphasizes diverse personal care solutions for men, women, and children.
Key similarities and differences
Both Coty and Edgewell Personal Care belong to the consumer defensive sector and operate internationally in the personal care market. Coty focuses primarily on beauty and cosmetics with a broad prestige brand portfolio, while Edgewell concentrates on personal grooming and skin protection products. Coty’s distribution spans prestige retailers and mass markets, whereas Edgewell segments its business into specialized product categories like shaving and feminine care.
Income Statement Comparison
The table below compares key income statement metrics for Coty Inc. and Edgewell Personal Care Company for their most recent fiscal year.
| Metric | Coty Inc. (COTY) | Edgewell Personal Care Company (EPC) |
|---|---|---|
| Market Cap | 2.79B | 847M |
| Revenue | 5.89B | 2.22B |
| EBITDA | 950M | 186M |
| EBIT | 530M | 97M |
| Net Income | -368M | 25.4M |
| EPS | -0.44 | 0.53 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
Coty Inc.
Coty’s revenue showed a 27.3% growth over 2021-2025 but declined by 3.7% in the most recent year to $5.89B. Gross margin remained favorable at 64.8%, while EBIT margin was stable at 9.0%. However, net income deteriorated significantly, posting a loss of $368M in 2025, reflecting unfavorable net margin trends and a sharp EPS decline.
Edgewell Personal Care Company
Edgewell’s revenue increased moderately by 6.5% over five years, reaching $2.22B in 2025 but fell 1.3% year-over-year. Gross margin held at a favorable 41.6%, and EBIT margin was neutral at 4.35%. Net income declined substantially, with a 2025 net margin of 1.14%, showing weaker profitability and a steep drop in EPS compared to prior years.
Which one has the stronger fundamentals?
Both companies experienced unfavorable net income and EPS trends recently, with Coty showing larger revenue growth but deeper net losses. Coty benefits from a stronger gross margin yet suffers from negative net margins, while Edgewell has more stable but lower margins. Overall, both exhibit income statement weaknesses, with neither demonstrating clearly stronger fundamentals at present.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Coty Inc. and Edgewell Personal Care Company, based on their most recent fiscal year data.
| Ratios | Coty Inc. (2025) | Edgewell Personal Care Co. (2025) |
|---|---|---|
| ROE | -9.98% | 1.64% |
| ROIC | 2.55% | 3.00% |
| P/E | -11.02 | 38.07 |
| P/B | 1.10 | 0.62 |
| Current Ratio | 0.77 | 1.76 |
| Quick Ratio | 0.46 | 0.90 |
| D/E (Debt-to-Equity) | 1.15 | 0.91 |
| Debt-to-Assets | 35.7% | 37.6% |
| Interest Coverage | 1.06 | 1.32 |
| Asset Turnover | 0.49 | 0.59 |
| Fixed Asset Turnover | 6.04 | 6.02 |
| Payout ratio | -3.62% | 115.4% |
| Dividend yield | 0.33% | 3.03% |
Interpretation of the Ratios
Coty Inc.
Coty Inc. presents mostly weak financial ratios with negative net margin (-6.24%) and return on equity (-9.98%), indicating profitability challenges. Its current and quick ratios are below 1, suggesting liquidity concerns. The company does not pay dividends, likely reflecting its ongoing recovery phase and reinvestment focus rather than shareholder payouts.
Edgewell Personal Care Company
Edgewell shows a mixed ratio profile with a positive but low net margin (1.14%) and modest return on equity (1.64%), signaling limited profitability. Its current ratio of 1.76 indicates solid liquidity, while the dividend yield is 3.03%, supported by a manageable payout. However, interest coverage is weak, posing some financial risk.
Which one has the best ratios?
Edgewell displays a more balanced and stable ratio set with a neutral overall evaluation, supported by liquidity and dividend payments. Coty’s ratios are largely unfavorable, reflecting profitability and liquidity weaknesses. Therefore, Edgewell’s ratios appear comparatively stronger, though both companies have areas needing improvement.
Strategic Positioning
This section compares the strategic positioning of Coty Inc. and Edgewell Personal Care Company, including market position, key segments, and exposure to technological disruption:
COTY
- Larger market cap at 2.79B USD, facing competitive pressure in beauty products.
- Focused on prestige fragrances, skin care, color cosmetics, plus mass market beauty products globally.
- Limited explicit exposure to technological disruption mentioned in data.
EPC
- Smaller market cap at 847M USD, competing mainly in personal care segments.
- Concentrated on wet shave, sun and skin care, and feminine care segments.
- No specific technological disruption exposure detailed in available data.
COTY vs EPC Positioning
Coty has a more diversified portfolio spanning prestige and mass beauty products globally, while Edgewell concentrates on personal care subsegments like shaving and feminine care. Coty’s broader segment reach contrasts with EPC’s focused approach, each with distinct market scale implications.
Which has the best competitive advantage?
Both companies are shedding value with ROIC below WACC; however, Coty shows growing ROIC indicating improving profitability, while Edgewell experiences declining ROIC, suggesting a weaker competitive advantage.
Stock Comparison
The stock prices of Coty Inc. and Edgewell Personal Care Company have both experienced significant declines over the past 12 months, with accelerating bearish trends and notable volatility in their trading dynamics.
Trend Analysis
Coty Inc. shows a strong bearish trend with a 75.57% price decline over the past year, marked by accelerating downward momentum from a high of 13.1 to a low of 3.1, alongside moderate volatility.
Edgewell Personal Care Company also exhibits a bearish trend, with a 52.87% price decrease over the same period, accelerating downward from a high of 40.38 to a low of 16.73, and higher volatility compared to Coty.
Comparing both stocks, Coty has delivered the largest market decline, indicating weaker performance relative to Edgewell Personal Care over the last 12 months.
Target Prices
Analysts present a clear target price consensus for Coty Inc. and Edgewell Personal Care Company.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Coty Inc. | 10 | 3.5 | 4.95 |
| Edgewell Personal Care Company | 23 | 20 | 21.5 |
The consensus target prices suggest moderate upside potential for Coty Inc. from its current price of 3.2 USD, while Edgewell’s target consensus at 21.5 USD indicates a bullish outlook compared to its current price of 18.23 USD.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Coty Inc. and Edgewell Personal Care Company:
Rating Comparison
COTY Rating
- Rating: C+ indicating a very favorable overall rating by analysts.
- Discounted Cash Flow Score: 5, considered very favorable for both companies.
- ROE Score: 1, marked very unfavorable, showing weak profit generation on equity.
- ROA Score: 1, very unfavorable, indicating low asset utilization efficiency.
- Debt To Equity Score: 1, very unfavorable, indicating higher financial risk.
- Overall Score: 2, moderate, reflecting the aggregate financial standing.
EPC Rating
- Rating: B reflecting a very favorable overall rating by analysts.
- Discounted Cash Flow Score: 5, considered very favorable for both companies.
- ROE Score: 2, moderate, showing better profit efficiency on equity than COTY.
- ROA Score: 2, moderate, better utilization of assets compared to COTY.
- Debt To Equity Score: 2, moderate, suggesting lower financial risk than COTY.
- Overall Score: 3, moderate, slightly stronger aggregate financial standing.
Which one is the best rated?
Based strictly on the provided data, Edgewell Personal Care Company has a better rating (B) with higher overall, ROE, ROA, and debt-to-equity scores than Coty Inc., which holds a C+ rating and lower financial metric scores.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Coty Inc. and Edgewell Personal Care Company:
COTY Scores
- Altman Z-Score: 0.01, in the distress zone, indicating high bankruptcy risk.
- Piotroski Score: 4, classified as average financial strength.
EPC Scores
- Altman Z-Score: 1.44, still in distress zone, signaling financial distress.
- Piotroski Score: 6, showing average but stronger financial health than COTY.
Which company has the best scores?
Based solely on the data, EPC has a higher Piotroski Score and a better Altman Z-Score than COTY, though both remain in the distress zone. EPC appears financially stronger by these measures.
Grades Comparison
Here is the comparison of recent reliable grades from established grading companies for Coty Inc. and Edgewell Personal Care Company:
Coty Inc. Grades
The following table shows Coty Inc.’s recent grades by known financial institutions:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Evercore ISI Group | Downgrade | In Line | 2025-12-23 |
| Citigroup | Maintain | Neutral | 2025-12-17 |
| TD Cowen | Maintain | Hold | 2025-12-12 |
| Berenberg | Downgrade | Hold | 2025-09-10 |
| Morgan Stanley | Maintain | Equal Weight | 2025-08-25 |
| RBC Capital | Maintain | Outperform | 2025-08-22 |
| Wells Fargo | Maintain | Equal Weight | 2025-08-22 |
| Goldman Sachs | Maintain | Neutral | 2025-08-22 |
| Barclays | Maintain | Underweight | 2025-08-22 |
| B of A Securities | Maintain | Underperform | 2025-08-22 |
Overall, Coty’s grades predominantly trend toward Hold and Neutral ratings, with a few downgrades and some Outperform and Equal Weight maintenances.
Edgewell Personal Care Company Grades
The following table summarizes Edgewell’s recent grades by reputable grading companies:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Maintain | Overweight | 2026-01-05 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-18 |
| Barclays | Maintain | Equal Weight | 2025-11-14 |
| RBC Capital | Maintain | Outperform | 2025-11-14 |
| Wells Fargo | Maintain | Overweight | 2025-11-14 |
| Wells Fargo | Maintain | Overweight | 2025-09-25 |
| Morgan Stanley | Upgrade | Equal Weight | 2025-08-06 |
| UBS | Maintain | Neutral | 2025-08-06 |
| Barclays | Maintain | Equal Weight | 2025-08-06 |
| Canaccord Genuity | Maintain | Buy | 2025-08-06 |
Edgewell’s ratings tend to be more positive, with multiple Overweight and Outperform grades and only a few Equal Weight and Neutral ratings.
Which company has the best grades?
Edgewell Personal Care Company has received generally more favorable grades, including several Overweight and Outperform ratings, compared to Coty Inc., which has mostly Hold and Neutral grades with some downgrades. This difference may influence investors’ perceptions of each company’s growth outlook and risk profile.
Strengths and Weaknesses
Below is a comparative overview of key strengths and weaknesses for Coty Inc. (COTY) and Edgewell Personal Care Company (EPC) based on the latest financial and operational data.
| Criterion | Coty Inc. (COTY) | Edgewell Personal Care Company (EPC) |
|---|---|---|
| Diversification | Moderate product diversification across Consumer Beauty and Prestige segments, with recent revenue contraction in Consumer Beauty (2.07B in 2025). | Broad product portfolio including razors, sun care, feminine care, and infant products, contributing to stable revenues (Razors 1.1B in 2025). |
| Profitability | Negative net margin (-6.24%) and ROE (-9.98%) indicate ongoing profitability challenges. ROIC (2.55%) below WACC (5.62%). | Slightly positive net margin (1.14%) and ROE (1.64%), but ROIC (3.0%) still below WACC (5.23%), showing weak profitability. |
| Innovation | Limited data on innovation, but slight ROIC improvement suggests some operational gains. | No clear innovation indicators; profitability and ROIC trends are declining, suggesting challenges in competitive advancements. |
| Global presence | Presence in luxury and prestige markets, but shrinking Consumer Beauty segment may reflect weakening global reach. | Strong presence in personal care markets, especially North America, with consistent sales in key categories. |
| Market Share | Prestige segment leads revenue but overall market share likely under pressure due to value destruction. | Stable market share in personal care and grooming categories, supported by diversified product lines. |
In summary, Coty is struggling with profitability despite improving capital efficiency, while Edgewell maintains a more balanced but still weak profitability profile with a broader product base. Both companies face value destruction risks, but EPC’s diversification and stable product sales present a more neutral outlook.
Risk Analysis
Below is a comparative risk table for Coty Inc. (COTY) and Edgewell Personal Care Company (EPC) based on the most recent 2025 data:
| Metric | Coty Inc. (COTY) | Edgewell Personal Care (EPC) |
|---|---|---|
| Market Risk | Moderate (Beta 0.96) | Lower (Beta 0.62) |
| Debt Level | High (D/E 1.15, interest coverage 2.33) | Moderate (D/E 0.91, interest coverage 1.32) |
| Regulatory Risk | Moderate (consumer products regulations) | Moderate (personal care regulations) |
| Operational Risk | Elevated (negative margins, low liquidity ratios) | Moderate (low margins but better liquidity) |
| Environmental Risk | Moderate (consumer goods sector impact) | Moderate (similar sector exposure) |
| Geopolitical Risk | Moderate (global distribution in 150 countries) | Moderate (global operations) |
The most impactful risks include Coty’s high debt levels combined with negative profitability and liquidity issues, placing it in financial distress per Altman Z-Score. Edgewell shows better financial stability but faces pressure from lower interest coverage and modest profitability. Both firms operate in regulated personal care markets with moderate exposure to global geopolitical and environmental risks. Careful risk management is advised, especially for Coty investors.
Which Stock to Choose?
Coty Inc. has experienced a mixed income evolution with a 27% revenue growth over 2021-2025 but steep declines in net income and EPS. Its profitability ratios, including ROE at -9.98% and net margin at -6.24%, are unfavorable. The company carries moderate debt with a debt-to-equity ratio of 1.15 and shows a slightly unfavorable overall financial ratios evaluation. The rating is moderately positive with a C+ grade, reflecting weaknesses in profitability and leverage.
Edgewell Personal Care Company shows modest revenue growth of 6.53% over the same period but also faces net income and EPS declines. Its profitability ratios are slightly better than Coty’s, with ROE at 1.64% and net margin at 1.14%, though still generally unfavorable. Debt levels are moderate with a debt-to-equity ratio of 0.91 and a neutral overall ratios evaluation. The company holds a stronger rating of B with moderate scores across key metrics.
Considering ratings and financials, Coty’s stronger market valuation and improving ROIC trend might appeal to growth-focused investors willing to accept risk, while Edgewell’s steadier ratios and better rating could be more suitable for those seeking moderate stability. Both companies are facing value destruction, but Coty’s profitability shows signs of recovery, unlike Edgewell’s declining ROIC.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Coty Inc. and Edgewell Personal Care Company to enhance your investment decisions:
