Head-To-Head Comparison: Ulta Beauty (NASDAQ:ULTA) versus HomesToLife (NASDAQ:HTLM)

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

Profitability

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

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

Insider & Institutional Ownership

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for HomesToLife and Ulta Beauty, as provided by MarketBeat.

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

Ulta Beauty has a consensus price target of $638.09, indicating a potential upside of 19.19%. Given Ulta Beauty’s stronger consensus rating and higher possible upside, analysts clearly believe Ulta Beauty is more favorable than HomesToLife.

Volatility and Risk

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HomesToLife	$377.88 million	0.07	$16.55 million	$0.12	15.51
Ulta Beauty	$12.39 billion	1.86	$1.15 billion	$26.67	20.07

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 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.

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.