WallStSmart

Bath & Body Works Inc. (BBWI)vsUlta Beauty Inc (ULTA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ulta Beauty Inc generates 70% more annual revenue ($12.39B vs $7.29B). ULTA leads profitability with a 9.3% profit margin vs 8.9%. BBWI appears more attractively valued with a PEG of 0.78. ULTA earns a higher WallStSmart Score of 55/100 (C-).

BBWI

Buy

51

out of 100

Grade: C-

Growth: 2.0Profit: 6.5Value: 8.0Quality: 5.3
Piotroski: 4/9Altman Z: 1.95

ULTA

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 7.5Value: 7.3Quality: 6.3
Piotroski: 4/9Altman Z: 3.94
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BBWIOvervalued (-6.0%)

Margin of Safety

-6.0%

Fair Value

$21.15

Current Price

$18.19

$2.96 premium

UndervaluedFair: $21.15Overvalued
ULTASignificantly Overvalued (-291.5%)

Margin of Safety

-291.5%

Fair Value

$174.49

Current Price

$526.14

$351.65 premium

UndervaluedFair: $174.49Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BBWI3 strengths · Avg: 8.7/10
P/E RatioValuation
5.8x10/10

Attractively priced relative to earnings

PEG RatioValuation
0.788/10

Growing faster than its price suggests

Operating MarginProfitability
22.5%8/10

Strong operational efficiency at 22.5%

ULTA2 strengths · Avg: 10.0/10
Return on EquityProfitability
43.6%10/10

Every $100 of equity generates 44 in profit

Altman Z-ScoreHealth
3.9410/10

Safe zone — low bankruptcy risk

Areas to Watch

BBWI4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.954/10

Grey zone — moderate risk

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Revenue GrowthGrowth
-2.3%2/10

Revenue declined 2.3%

EPS GrowthGrowth
-4.7%2/10

Earnings declined 4.7%

ULTA3 concerns · Avg: 3.3/10
PEG RatioValuation
2.244/10

Expensive relative to growth rate

Price/BookValuation
8.3x4/10

Trading at 8.3x book value

EPS GrowthGrowth
-5.4%2/10

Earnings declined 5.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : BBWI

The strongest argument for BBWI centers on P/E Ratio, PEG Ratio, Operating Margin. 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. Revenue growth of 11.8% demonstrates continued momentum.

Bear Case : BBWI

The primary concerns for BBWI are Altman Z-Score, Return on Equity, Revenue Growth.

Bear Case : ULTA

The primary concerns for ULTA are PEG Ratio, Price/Book, EPS Growth.

Key Dynamics to Monitor

BBWI carries more volatility with a beta of 1.42 — expect wider price swings.

ULTA is growing revenue faster at 11.8% — sustainability is the question.

ULTA generates stronger free cash flow (907M), providing more financial flexibility.

Monitor SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ULTA scores higher overall (55/100 vs 51/100) and 11.8% revenue growth. 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 recognized for its extensive range of high-quality personal care products, including body care, skincare, fragrances, and home fragrances. With a robust omnichannel presence, the company effectively marries a strong physical retail footprint with a dynamic online platform, fostering exceptional customer loyalty and engagement. Bath & Body Works continues to drive innovation and adapt to shifting consumer preferences through targeted seasonal marketing efforts, enhancing its competitive position in the rapidly evolving beauty and personal care industry. As a subsidiary of L Brands, Inc., it benefits from synergies and shared resources while underscoring its commitment to sustainability and community involvement, positioning it strategically for future growth and market leadership.

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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