Ulta Beauty vs Sally Beauty Which Outperforms?

Ulta Beauty and Sally Beauty are two leading retail chains in the beauty industry, each offering a wide range of products and services to customers. While Ulta Beauty is known for its upscale and trendy beauty products, Sally Beauty focuses on providing professional-grade products and tools to both consumers and professionals. Both companies have seen growth in their stocks over the years, as the demand for beauty products continues to rise. Investors may want to consider the differences in their business models and target markets when evaluating the potential for long-term investment in Ulta Beauty vs Sally Beauty stocks.

Ulta Beauty or Sally Beauty?

When comparing Ulta Beauty and Sally 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 Ulta Beauty and Sally 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. Ulta Beauty has a dividend yield of -%, while Sally Beauty has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ulta Beauty reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Sally 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 Ulta Beauty P/E ratio at 15.03 and Sally Beauty's P/E ratio at 9.19. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ulta Beauty P/B ratio is 7.74 while Sally Beauty's P/B ratio is 2.24.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ulta Beauty has seen a 5-year revenue growth of 1.03%, while Sally Beauty's is 0.09%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ulta Beauty's ROE at 54.02% and Sally Beauty's ROE at 26.70%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $380.79 for Ulta Beauty and $12.95 for Sally Beauty. Over the past year, Ulta Beauty's prices ranged from $318.17 to $574.76, with a yearly change of 80.65%. Sally Beauty's prices fluctuated between $8.59 and $14.09, with a yearly change of 64.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.