WallStSmart

RH (RH)vsUlta Beauty Inc (ULTA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ulta Beauty Inc generates 271% more annual revenue ($12.71B vs $3.43B). ULTA leads profitability with a 9.4% profit margin vs 3.0%. RH appears more attractively valued with a PEG of 0.79. ULTA earns a higher WallStSmart Score of 63/100 (C+).

RH

Buy

61

out of 100

Grade: C+

Growth: 4.7Profit: 6.0Value: 6.7Quality: 4.3
Piotroski: 5/9

ULTA

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 4.7Quality: 6.0
Piotroski: 3/9Altman Z: 3.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RHUndervalued (+4.3%)

Margin of Safety

+4.3%

Fair Value

$208.94

Current Price

$146.63

$62.31 discount

UndervaluedFair: $208.94Overvalued
ULTASignificantly Overvalued (-23.0%)

Margin of Safety

-23.0%

Fair Value

$555.27

Current Price

$467.07

$88.20 premium

UndervaluedFair: $555.27Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RH3 strengths · Avg: 9.0/10
EPS GrowthGrowth
112.5%10/10

Earnings expanding 112.5% YoY

Return on EquityProfitability
29.9%9/10

Every $100 of equity generates 30 in profit

PEG RatioValuation
0.798/10

Growing faster than its price suggests

ULTA3 strengths · Avg: 9.3/10
Return on EquityProfitability
46.1%10/10

Every $100 of equity generates 46 in profit

Altman Z-ScoreHealth
3.4110/10

Safe zone — low bankruptcy risk

P/E RatioValuation
17.5x8/10

Attractively priced relative to earnings

Areas to Watch

RH4 concerns · Avg: 3.0/10
P/E RatioValuation
29.6x4/10

Moderate valuation

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
0.3%3/10

Operating margin of 0.3%

Price/BookValuation
45.5x2/10

Trading at 45.5x book value

ULTA2 concerns · Avg: 3.5/10
PEG RatioValuation
1.624/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : RH

The strongest argument for RH centers on EPS Growth, Return on Equity, PEG Ratio. PEG of 0.79 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, P/E Ratio. Revenue growth of 11.1% demonstrates continued momentum.

Bear Case : RH

The primary concerns for RH are P/E Ratio, Profit Margin, Operating Margin. Debt-to-equity of 65.50 is elevated, increasing financial risk. Thin 3.0% margins leave little buffer for downturns.

Bear Case : ULTA

The primary concerns for ULTA are PEG Ratio, Piotroski F-Score.

Key Dynamics to Monitor

RH carries more volatility with a beta of 1.90 — expect wider price swings.

ULTA is growing revenue faster at 11.1% — sustainability is the question.

ULTA generates stronger free cash flow (204M), providing more financial flexibility.

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

Bottom Line

ULTA scores higher overall (63/100 vs 61/100) and 11.1% 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.

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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