Sally Beauty Holdings Inc (SBH)vsUlta Beauty Inc (ULTA)
SBH
Sally Beauty Holdings Inc
$15.40
-0.45%
CONSUMER CYCLICAL · Cap: $1.42B
ULTA
Ulta Beauty Inc
$508.09
+1.31%
CONSUMER CYCLICAL · Cap: $20.62B
Smart Verdict
WallStSmart Research — data-driven comparison
Ulta Beauty Inc generates 241% more annual revenue ($12.71B vs $3.73B). ULTA leads profitability with a 9.4% profit margin vs 4.9%. SBH appears more attractively valued with a PEG of 0.66. SBH earns a higher WallStSmart Score of 65/100 (C+).
SBH
Buy65
out of 100
Grade: C+
ULTA
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1.4%
Fair Value
$15.01
Current Price
$15.40
$0.39 premium
Margin of Safety
-23.4%
Fair Value
$553.46
Current Price
$508.09
$45.37 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 22 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 46 in profit
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Areas to Watch
2.3% revenue growth
Smaller company, higher risk/reward
4.9% margin — thin
Elevated debt levels
Expensive relative to growth rate
Trading at 8.0x book value
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : SBH
The strongest argument for SBH centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.66 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 : SBH
The primary concerns for SBH are Revenue Growth, Market Cap, Profit Margin. Debt-to-equity of 1.81 is elevated, increasing financial risk. Thin 4.9% margins leave little buffer for downturns.
Bear Case : ULTA
The primary concerns for ULTA are PEG Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
SBH carries more volatility with a beta of 1.02 — 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
SBH scores higher overall (65/100 vs 63/100). 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.
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.
Visit Website →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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