Ulta Beauty (NASDAQ: ULTA) is one of 13 public companies in the “Retail stores, not elsewhere classified” industry, but how does it compare to its rivals? We will compare Ulta Beauty to similar businesses based on the strength of its analyst recommendations, earnings, valuation, institutional ownership, profitability, risk and dividends.

Profitability

This table compares Ulta Beauty and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ulta Beauty 9.80% 36.09% 20.74%
Ulta Beauty Competitors 4.40% 4.18% 7.08%

Risk & Volatility

Ulta Beauty has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Ulta Beauty’s rivals have a beta of 1.21, suggesting that their average stock price is 21% more volatile than the S&P 500.

Valuation & Earnings

This table compares Ulta Beauty and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ulta Beauty $6.72 billion $658.56 million 30.46
Ulta Beauty Competitors $7.59 billion $123.03 million -103.28

Ulta Beauty’s rivals have higher revenue, but lower earnings than Ulta Beauty. Ulta Beauty is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings for Ulta Beauty and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ulta Beauty 0 6 15 0 2.71
Ulta Beauty Competitors 164 618 1026 56 2.52

Ulta Beauty presently has a consensus price target of $321.32, indicating a potential downside of 2.78%. As a group, “Retail stores, not elsewhere classified” companies have a potential upside of 13.72%. Given Ulta Beauty’s rivals higher possible upside, analysts clearly believe Ulta Beauty has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

90.7% of Ulta Beauty shares are owned by institutional investors. Comparatively, 62.8% of shares of all “Retail stores, not elsewhere classified” companies are owned by institutional investors. 5.6% of Ulta Beauty shares are owned by company insiders. Comparatively, 17.2% of shares of all “Retail stores, not elsewhere classified” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Ulta Beauty beats its rivals on 8 of the 13 factors compared.

About Ulta Beauty

Ulta Beauty, Inc. operates as a beauty retailer in the United States. The company's stores offer cosmetics, fragrances, haircare and skincare products, bath and body products, and salon styling tools; salon services, including hair, skin, and brow services; and others, including nail products and accessories. It provides private label products, such as the Ulta Beauty Collection branded cosmetics, skincare, and bath products, as well as Ulta Beauty branded products. As of November 3, 2018, the company operated 1,163 retail stores across 50 states. It also distributes its products through its Website, ulta.com, which includes a collection of tips, tutorials, and social content. The company was formerly known as Ulta Salon, Cosmetics & Fragrance, Inc. and changed its name to Ulta Beauty, Inc. in January 2017. Ulta Beauty, Inc. was founded in 1990 and is based in Bolingbrook, Illinois.

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