Bath & Body Works Inc. (BBWI)vsUlta Beauty Inc (ULTA)
BBWI
Bath & Body Works Inc.
$17.40
+1.22%
CONSUMER CYCLICAL · Cap: $3.57B
ULTA
Ulta Beauty Inc
$540.98
-0.51%
CONSUMER CYCLICAL · Cap: $23.48B
Smart Verdict
WallStSmart Research — data-driven comparison
Ulta Beauty Inc generates 80% more annual revenue ($12.96B vs $7.21B). BBWI leads profitability with a 10.8% profit margin vs 9.3%. BBWI appears more attractively valued with a PEG of 0.78. ULTA earns a higher WallStSmart Score of 61/100 (C+).
BBWI
Buy57
out of 100
Grade: C
ULTA
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+10.5%
Fair Value
$25.04
Current Price
$17.40
$7.64 discount
Margin of Safety
-20.8%
Fair Value
$565.46
Current Price
$540.98
$24.48 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 93.3% YoY
Conservative balance sheet, low leverage
Growing faster than its price suggests
Every $100 of equity generates 46 in profit
Safe zone — low bankruptcy risk
Areas to Watch
Grey zone — moderate risk
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Revenue declined 2.3%
Expensive relative to growth rate
Trading at 8.5x book value
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : BBWI
The strongest argument for BBWI centers on P/E Ratio, EPS Growth, Debt/Equity. PEG of 0.78 suggests the stock is reasonably priced for its growth.
Bull Case : ULTA
The strongest argument for ULTA centers on Return on Equity, Altman Z-Score.
Bear Case : BBWI
The primary concerns for BBWI are Altman Z-Score, Return on Equity, Piotroski F-Score.
Bear Case : ULTA
The primary concerns for ULTA are PEG Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
BBWI profiles as a declining stock while ULTA is a value play — different risk/reward profiles.
BBWI carries more volatility with a beta of 1.37 — expect wider price swings.
ULTA is growing revenue faster at 8.9% — sustainability is the question.
ULTA generates stronger free cash flow (38M), providing more financial flexibility.
Bottom Line
ULTA scores higher overall (61/100 vs 57/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Bath & Body Works Inc.
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Bath & Body Works Inc. (BBWI) is a leading specialty retailer distinguished by its extensive range of premium personal care and home fragrance products. With a strong omnichannel strategy that seamlessly merges its expansive retail footprint with a vibrant e-commerce platform, the company prioritizes customer accessibility and engagement. As a subsidiary of L Brands, Inc., BBWI benefits from operational synergies while fostering innovation in product offerings to align with evolving consumer preferences. The company is dedicated to sustainability and community stewardship, positioning itself for long-term growth and competitive resilience in the dynamic beauty and personal care market.
Ulta Beauty Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Ulta Beauty, Inc., formerly known as Ulta Salon, Cosmetics & Fragrance Inc., is an American chain of beauty stores headquartered in Bolingbrook, Illinois. Ulta Beauty carries cosmetics and skincare brands, men's and women's fragrances, nail products, bath and body products, beauty tools and haircare products.
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