Best Buy Co. Inc (BBY)vsSally Beauty Holdings Inc (SBH)
BBY
Best Buy Co. Inc
$60.40
-2.12%
CONSUMER CYCLICAL · Cap: $12.93B
SBH
Sally Beauty Holdings Inc
$13.84
+0.22%
CONSUMER CYCLICAL · Cap: $1.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Best Buy Co. Inc generates 1025% more annual revenue ($41.69B vs $3.71B). SBH leads profitability with a 4.9% profit margin vs 2.6%. SBH appears more attractively valued with a PEG of 1.00. BBY earns a higher WallStSmart Score of 64/100 (C+).
BBY
Buy64
out of 100
Grade: C+
SBH
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+71.6%
Fair Value
$235.87
Current Price
$60.40
$175.47 discount
Margin of Safety
-27.1%
Fair Value
$11.97
Current Price
$13.84
$1.87 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 37 in profit
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Generating 1.1B in free cash flow
Attractively priced relative to earnings
Revenue surging 60.0% year-over-year
Every $100 of equity generates 24 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
3.7% earnings growth
2.6% margin — thin
Revenue declined 1.0%
Smaller company, higher risk/reward
4.9% margin — thin
Earnings declined 22.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : BBY
The strongest argument for BBY centers on Return on Equity, Altman Z-Score, P/E Ratio. PEG of 1.19 suggests the stock is reasonably priced for its growth.
Bull Case : SBH
The strongest argument for SBH centers on P/E Ratio, Revenue Growth, Return on Equity. Revenue growth of 60.0% demonstrates continued momentum. PEG of 1.00 suggests the stock is reasonably priced for its growth.
Bear Case : BBY
The primary concerns for BBY are EPS Growth, Profit Margin, Revenue Growth. Thin 2.6% margins leave little buffer for downturns.
Bear Case : SBH
The primary concerns for SBH are Market Cap, Profit Margin, EPS Growth. Thin 4.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
BBY profiles as a value stock while SBH is a hypergrowth play — different risk/reward profiles.
BBY carries more volatility with a beta of 1.44 — expect wider price swings.
SBH is growing revenue faster at 60.0% — sustainability is the question.
BBY generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
BBY scores higher overall (64/100 vs 59/100). 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.
Best Buy Co. Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota.
Sally Beauty Holdings Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Sally Beauty Holdings, Inc. is a specialty retailer and distributor of professional beauty products. The company is headquartered in Denton, Texas.
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