WallStSmart

RH (RH)vsUlta Beauty Inc (ULTA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ulta Beauty Inc generates 263% more annual revenue ($12.39B vs $3.41B). ULTA leads profitability with a 9.3% profit margin vs 3.2%. RH appears more attractively valued with a PEG of 0.41. RH earns a higher WallStSmart Score of 64/100 (C+).

RH

Buy

64

out of 100

Grade: C+

Growth: 4.7Profit: 6.5Value: 7.3Quality: 5.0

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

RHSignificantly Overvalued (-56.7%)

Margin of Safety

-56.7%

Fair Value

$127.62

Current Price

$136.94

$9.32 premium

UndervaluedFair: $127.62Overvalued
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

RH2 strengths · Avg: 9.5/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

Return on EquityProfitability
29.9%9/10

Every $100 of equity generates 30 in profit

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

RH2 concerns · Avg: 2.5/10
Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Price/BookValuation
760.8x2/10

Trading at 760.8x book value

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 : RH

The strongest argument for RH centers on PEG Ratio, Return on Equity. PEG of 0.41 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 : RH

The primary concerns for RH are Profit Margin, Price/Book. Thin 3.2% margins leave little buffer for downturns.

Bear Case : ULTA

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

Key Dynamics to Monitor

RH carries more volatility with a beta of 2.10 — 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

RH scores higher overall (64/100 vs 55/100). 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.

RH

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

RH, is a home furnishings retailer. The company is headquartered in Corte Madera, California.

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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