Sally Beauty vs Ulta Beauty Which Is More Profitable?

Sally Beauty Holdings, Inc. and Ulta Beauty, Inc. are two leading beauty retailers in the United States. Sally Beauty focuses on serving beauty professionals and consumers with a wide range of beauty products, while Ulta Beauty offers a diverse selection of prestige and mass beauty brands, as well as salon services. Investors may be interested in comparing the financial performance and growth prospects of both companies to make informed decisions about investing in their stocks.

Sally Beauty or Ulta Beauty?

When comparing Sally Beauty and Ulta Beauty, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Sally Beauty and Ulta Beauty.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Sally Beauty has a dividend yield of -%, while Ulta Beauty has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sally Beauty reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Ulta Beauty reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Sally Beauty P/E ratio at 8.40 and Ulta Beauty's P/E ratio at 16.55. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sally Beauty P/B ratio is 2.05 while Ulta Beauty's P/B ratio is 8.54.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sally Beauty has seen a 5-year revenue growth of 0.09%, while Ulta Beauty's is 1.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sally Beauty's ROE at 26.70% and Ulta Beauty's ROE at 51.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $12.54 for Sally Beauty and $423.79 for Ulta Beauty. Over the past year, Sally Beauty's prices ranged from $9.06 to $14.79, with a yearly change of 63.25%. Ulta Beauty's prices fluctuated between $318.17 and $574.76, with a yearly change of 80.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.