ELF vs NWL: Which Is the Better Buy in 2026?

Last updated October 2026

Short answer

ELF is the larger of the two ($6.70B market cap): the incumbent the market prices for continued execution (29.11x forward earnings, beta 1.60). NWL is the smaller challenger ($2.41B), cheaper on forward earnings (8.22x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.

ELF vs NWL: the tie-breaker metrics

Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Metric	ELF	NWL	What it tells you
Market cap	$6.70B	$2.41B	Size. The larger name is the incumbent; the smaller has more room to grow and more to prove.
Forward P/E	29.11	8.22	Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up.
Beta	1.60	0.87	Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through.
Price vs 52-week range	71% of range	64% of range	Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why.
Price / book	5.72	0.98	How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price.

Reading it: NWL is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

Before you buy: how ELF and NWL affect your concentration

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ELF and NWL share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ELF and NWL exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

What does e.l.f. Beauty (ELF) do?

e.l.f. Beauty is a California-based cosmetics and skincare company built on a mass-market, value-first model: dupes of prestige products at low price points, sold heavily through Target, Walmart, Ulta and its own digital channels. The company has expanded from its flagship e.l.f. Cosmetics brand into a portfolio that now includes e.l.f. Skin, Naturium, Well People, Keys Soulcare and, since fiscal 2026, Hailey Bieber's rhode. It reported fiscal 2026 (ended March 2026) net sales of roughly $1.64 billion, up about 25% year over year, its seventh consecutive year of net sales and market-share growth. Trailing twelve-month revenue has since reached about $1.76 billion.

Full ELF guide

What does Newell Brands (NWL) do?

Newell Brands is a global consumer-goods company that designs, manufactures, and sells everyday household products across three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. Its brands include Sharpie, Paper Mate, Expo, Elmer's, Rubbermaid, FoodSaver, Yankee Candle, Graco, NUK, Coleman, Oster, and Dymo, sold through mass retailers, e-commerce, and commercial channels worldwide. Full-year 2025 revenue was about $7.2 billion, down roughly 5 percent, continuing a multi-year decline as the company narrowed its brand portfolio and worked through soft discretionary demand.

Full NWL guide

ELF vs NWL: how do they differ?

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

ELF drivers: Sustained market-share gains; Portfolio expansion into skincare and prestige.
NWL drivers: Margin and operating recovery; Iconic, defensive brand portfolio.

Which fits which kind of investor

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: China sourcing is the central risk: e.l.f. For NWL, the balance sheet is the central risk: total debt of about $5.7 billion against about $209 million of cash leaves little room for error, with maturities in the 2027 to 2028 window that must be refinanced or repaid.

ELF or NWL: which should you pick?

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick ELF if you believe its drivers more; NWL if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the ELF and NWL guides.

ELF vs NWL: the full fundamentals

ELF. Trailing revenue of about $1.76 billion and a rebound in quarterly profit have pulled the trailing P/E down from the triple digits seen in mid-2026, though at roughly 117x it still reflects a depressed fiscal 2026. The forward P/E near 29x is the more useful anchor and prices in fiscal 2028 EPS of about $3.90, so the multiple remains a bet that margins hold after the tariff and acquisition hit.

NWL. NWL trades at a low price-to-sales multiple (about 0.34x) and about 8.5 times forward earnings, a valuation that reflects deep skepticism about the debt load and multi-year revenue decline rather than the size of the underlying business, even after the 2026 rally. It is best read as a leveraged turnaround: a small equity stub sitting on top of roughly $5.7 billion of debt (enterprise value about 8.8 times EBITDA), where the stock is far more sensitive to deleveraging and margin news than to headline sales.

Headline figures (approximate, October 2026): ELF shows revenue (ttm) ~$1.76B, revenue growth (latest quarter, yoy) ~35%, gross / operating margin ~72% / ~14%, net income (ttm) ~$60M (EPS ~$0.98); NWL shows revenue (ttm) ~$7.25B, revenue (q2 2026) ~$1.99B, up ~3%, gross / operating margin (ttm) ~35% / ~15%, net income (ttm) ~-$221M (Q2 2026: ~$106M).

The bottom line: ELF vs NWL

ELF and NWL are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ELF and NWL exposure against your real portfolio. It is not an investment adviser.

Wondering how ELF or NWL fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.

Investing in e.l.f. Beauty with AI

Connect the broker you already use and ask Walnut's AI how ELF fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.

Does ELF fit me?

FAQ

What is the difference between ELF and NWL?

e.l.f. Newell Brands is a global consumer-goods company that designs, manufactures, and sells everyday household products across three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.

Is ELF or NWL the better stock?

Neither is universally better. ELF is the larger incumbent; NWL is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.

Which is cheaper, ELF or NWL?

On forward P/E (as of October 2026), ELF trades at 29.11x and NWL at 8.22x, so NWL is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.

Should you own both ELF and NWL?

Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.

What are the risks of ELF vs NWL?

ELF: China sourcing is the central risk: e.l.f. sources roughly 75% of products from China, so tariffs directly pressure gross margin (around 72% on a trailing basis) and force price actions that could dent its value appeal. The valuation is demanding, at roughly 117x trailing and 29x forward earnings, and the shares now sit slightly above the average analyst target of about $109, so any growth deceleration or margin miss can trigger sharp drawdowns. The 52-week range of about $49 to $139 shows how volatile the stock is. Consensus expects a year-over-year EPS decline in the September and December 2026 quarters, which sets up tougher comparisons. The balance sheet now carries about $929 million of debt against roughly $344 million of cash after the rhode deal. Integration of rhode and other acquisitions carries execution risk, and a single earnings miss can reset expectations quickly. Beauty is also intensely competitive and trend-driven, so viral momentum can fade. Finally, heavy reliance on a few large retail partners concentrates channel risk. NWL: The balance sheet is the central risk: total debt of about $5.7 billion against about $209 million of cash leaves little room for error, with maturities in the 2027 to 2028 window that must be refinanced or repaid. The dividend, yielding about 4.9 percent at the October 2026 price, equals roughly twice trailing GAAP earnings (the company still shows a trailing net loss of about $221 million), so a reduction is plausible and would pressure income-focused holders; a September 2026 screen of high-yield dividends at risk of a cut included the name. Revenue has declined for multiple years, and much of the portfolio sells discretionary goods that are sensitive to consumer spending, tariffs, and input costs. The June 2026 move to the Russell 2000 reflected a shrunken market value. After a 56% rally in 2026 the shares sit close to the analyst mean target of about $6.66, and analysts expect EPS to dip in 2027 to about $0.69 from about $0.76 in 2026. As a turnaround, execution risk is high and progress may not be linear.

Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell ELF or NWL; figures are approximate and dated (as of October 2026). Verify current data before investing.