Head to Head Review: HomesToLife (NASDAQ:HTLM) versus Ulta Beauty (NASDAQ:ULTA)

Ulta Beauty (NASDAQ:ULTA) and HomesToLife (NASDAQ:HTLM) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Ulta Beauty and HomesToLife, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ulta Beauty	1	6	19	1	2.74
HomesToLife	1	0	0	0	1.00

Ulta Beauty currently has a consensus target price of $638.09, suggesting a potential upside of 20.88%. Given Ulta Beauty’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Ulta Beauty is more favorable than HomesToLife.

Risk and Volatility

Ulta Beauty has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, HomesToLife has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500.

Profitability

This table compares Ulta Beauty and HomesToLife’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ulta Beauty	9.36%	44.77%	17.27%
HomesToLife	N/A	N/A	N/A

Institutional & Insider Ownership

90.4% of Ulta Beauty shares are held by institutional investors. 0.2% of Ulta Beauty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Ulta Beauty and HomesToLife”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ulta Beauty	$12.39 billion	1.83	$1.15 billion	$26.67	19.79
HomesToLife	$377.88 million	0.07	$16.55 million	$0.12	14.93

Ulta Beauty has higher revenue and earnings than HomesToLife. HomesToLife is trading at a lower price-to-earnings ratio than Ulta Beauty, indicating that it is currently the more affordable of the two stocks.

Summary

Ulta Beauty beats HomesToLife on 15 of the 15 factors compared between the two stocks.

About Ulta Beauty

Ulta Beauty, Inc. operates as a specialty beauty retailer in the United States. The company offers branded and private label beauty products, including cosmetics, fragrance, haircare, skincare, bath and body products, professional hair products, and salon styling tools through its Ulta Beauty stores, shop-in-shops, Ulta.com website, and its mobile applications. It also offers beauty services, including hair, makeup, brow, and skin services at its stores. 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 incorporated in 1990 and is based in Bolingbrook, Illinois.

About HomesToLife

HomesToLife Ltd. engages in the retail of home furniture and sale of customized furniture solutions. Its products include leather and fabric upholstered furniture, case goods, and accessories. The company was founded by Yong Pin Phua and Yong Tat Phua in September 1989 and is headquartered in Singapore.