Jim Cramer -- Estee Lauder (EL) Is Leading the Pack, Coty's (COTY) Getting Crushed - TheStreet

Shares of Coty Inc.  (COTY) - Get Report are plunging Tuesday, falling more than 12.5% to $17.15 and are hovering just above their 52-week low of $16.95. Although the company beat on revenue expectations, it missed on EPS estimates and reported a 5% decline in organic revenue growth when excluding recent acquisitions.

"This is a terrible quarter, just terrible," TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, said on CNBC's "Mad Dash" segment Tuesday. This seems especially true when one considers the "unbelievable numbers" that Estee Lauder (EL) - Get Report just reported, Cramer noted.

This is a "tale of two cities," he reasoned, explaining that Estee Lauder "shows you how to be a juggernaut." Coty's poor results just make investors feel better about Procter & Gamble, which made a $12.5 billion deal with Coty to offload its beauty care product lines in 2015.

The difference between Estee Lauder and Coty are "extraordinary" right now, he lamented. As per usual, though, the Coty management team said the company had a good quarter, Cramer added. They cited having a transformational 2017, but Cramer wanted to know what exactly Coty was transforming itself into.

The bottom line? Makeup and cosmetics aren't dead. Trends in China and looking good on Instagram still matter. But Estee Lauder is "running away from the pack," not Coty, Cramer concluded.

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This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.