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

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%

Volatility & Risk

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

Insider and Institutional Ownership

89.3% of Ulta Beauty shares are held by institutional investors. Comparatively, 62.4% of shares of all “Retail stores, not elsewhere classified” companies are held by institutional investors. 5.6% of Ulta Beauty shares are held by company insiders. Comparatively, 17.2% of shares of all “Retail stores, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ulta Beauty 0 6 15 0 2.71
Ulta Beauty Competitors 164 618 1025 55 2.52

Ulta Beauty currently has a consensus price target of $321.32, indicating a potential downside of 2.86%. As a group, “Retail stores, not elsewhere classified” companies have a potential upside of 12.85%. Given Ulta Beauty’s rivals higher possible upside, analysts clearly believe Ulta Beauty has less favorable growth aspects than its rivals.

Valuation and 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 30.49
Ulta Beauty Competitors $7.59 billion $123.03 million -104.38

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.

Summary

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

Ulta Beauty Company Profile

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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