Ulta Beauty vs Target Which Performs Better?

Ulta Beauty and Target are two prominent retailers in the beauty and personal care industry, but their stocks have followed different trajectories in recent years. Ulta Beauty has experienced impressive growth, driven by its strong brand reputation and expanding product offerings. On the other hand, Target has also seen steady growth, benefiting from its diversified product lines and strong online presence. Investors may consider factors such as market trends, financial performance, and competitive positioning when evaluating these stocks for investment opportunities.

Ulta Beauty or Target?

When comparing Ulta Beauty and Target, 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 Target.

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 Target has a dividend yield of 2.88%. 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, Target reports a 5-year dividend growth of 11.59% year and a payout ratio of 45.29%.

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 14.95 and Target's P/E ratio at 15.80. 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 7.70 while Target's P/B ratio is 4.91.

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 Target's is 0.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ulta Beauty's ROE at 54.02% and Target's ROE at 33.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $379.93 for Ulta Beauty and $149.90 for Target. Over the past year, Ulta Beauty's prices ranged from $318.17 to $574.76, with a yearly change of 80.65%. Target's prices fluctuated between $107.13 and $181.86, with a yearly change of 69.76%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.