WallStSmart

Sally Beauty Holdings Inc (SBH)vsWilliams-Sonoma Inc (WSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Williams-Sonoma Inc generates 115% more annual revenue ($8.01B vs $3.73B). WSM leads profitability with a 14.7% profit margin vs 5.2%. SBH appears more attractively valued with a PEG of 0.71. SBH earns a higher WallStSmart Score of 69/100 (B-).

SBH

Strong Buy

69

out of 100

Grade: B-

Growth: 4.7Profit: 6.0Value: 8.0Quality: 7.0
Piotroski: 6/9Altman Z: 2.64

WSM

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 4.3Quality: 6.0
Piotroski: 2/9Altman Z: 3.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SBHUndervalued (+0.5%)

Margin of Safety

+0.5%

Fair Value

$15.29

Current Price

$15.96

$0.67 discount

UndervaluedFair: $15.29Overvalued

Intrinsic value data unavailable for WSM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SBH5 strengths · Avg: 8.6/10
P/E RatioValuation
8.2x10/10

Attractively priced relative to earnings

Return on EquityProfitability
21.9%9/10

Every $100 of equity generates 22 in profit

PEG RatioValuation
0.718/10

Growing faster than its price suggests

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

EPS GrowthGrowth
25.0%8/10

Earnings expanding 25.0% YoY

WSM3 strengths · Avg: 9.3/10
Return on EquityProfitability
55.1%10/10

Every $100 of equity generates 55 in profit

Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

EPS GrowthGrowth
42.0%8/10

Earnings expanding 42.0% YoY

Areas to Watch

SBH4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.2%4/10

0.2% revenue growth

Market CapQuality
$1.48B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
5.2%3/10

5.2% margin — thin

Debt/EquityHealth
1.743/10

Elevated debt levels

WSM3 concerns · Avg: 3.0/10
Price/BookValuation
14.2x4/10

Trading at 14.2x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.582/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : SBH

The strongest argument for SBH centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.71 suggests the stock is reasonably priced for its growth.

Bull Case : WSM

The strongest argument for WSM centers on Return on Equity, Altman Z-Score, EPS Growth.

Bear Case : SBH

The primary concerns for SBH are Revenue Growth, Market Cap, Profit Margin. Debt-to-equity of 1.74 is elevated, increasing financial risk.

Bear Case : WSM

The primary concerns for WSM are Price/Book, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

WSM carries more volatility with a beta of 1.46 — expect wider price swings.

WSM is growing revenue faster at 6.7% — sustainability is the question.

WSM generates stronger free cash flow (481M), providing more financial flexibility.

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

Bottom Line

SBH scores higher overall (69/100 vs 64/100). Both earn "Strong 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.

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Williams-Sonoma Inc

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Williams-Sonoma, Inc. is an omnichannel specialty retailer of various home products. The company is headquartered in San Francisco, California.

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