BBWI vs ULTA

For growth investors, Ulta Beauty, Inc.

(ULTA) is the stronger pick with 9. 7% revenue growth year-over-year, versus -0. 2% for Bath & Body Works, Inc. (BBWI). Bath & Body Works, Inc. (BBWI) offers the better valuation at 6. 3x trailing P/E (6. 5x forward), making it the more compelling value choice. Analysts rate Ulta Beauty, Inc. (ULTA) a "Buy" — based on 47 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Bath & Body Works, Inc.

(BBWI) is the cheapest at 6. 3x versus Ulta Beauty, Inc. at 20. 5x. On forward P/E, Bath & Body Works, Inc. is actually cheaper at 6. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Ulta Beauty, Inc. wins at 0. 35x versus Bath & Body Works, Inc. 's 14. 00x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Ulta Beauty, Inc.

(ULTA) delivered a total return of +63. 1%, compared to -57. 5% for Bath & Body Works, Inc. (BBWI). Over 10 years, the gap is even starker: ULTA returned +152. 6% versus BBWI's -47. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Ulta Beauty, Inc.

(ULTA) is the lower-risk stock at 0. 74β versus Bath & Body Works, Inc. 's 1. 59β — meaning BBWI is approximately 114% more volatile than ULTA relative to the S&P 500.

By revenue growth (latest reported year), Ulta Beauty, Inc.

(ULTA) is pulling ahead at 9. 7% versus -0. 2% for Bath & Body Works, Inc. (BBWI). On earnings-per-share growth, the picture is similar: Ulta Beauty, Inc. grew EPS 1. 2% year-over-year, compared to -15. 0% for Bath & Body Works, Inc.. Over a 3-year CAGR, ULTA leads at 6. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Ulta Beauty, Inc.

(ULTA) is the more profitable company, earning 9. 3% net margin versus 8. 9% for Bath & Body Works, Inc. — meaning it keeps 9. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ULTA leads at 39. 1% versus 15. 4% for BBWI. At the gross margin level — before operating expenses — BBWI leads at 43. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Ulta Beauty, Inc. (ULTA) is the more undervalued stock at a PEG of 0. 35x versus Bath & Body Works, Inc. 's 14. 00x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Bath & Body Works, Inc. (BBWI) trades at 6. 5x forward P/E versus 18. 4x for Ulta Beauty, Inc. — 11. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ULTA: 38. 1% to $727. 36.

In this comparison, BBWI (4.

1% yield) pays a dividend. ULTA does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Ulta Beauty, Inc.

(ULTA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 74), +152. 6% 10Y return). Bath & Body Works, Inc. (BBWI) carries a higher beta of 1. 59 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ULTA: +152. 6%, BBWI: -47. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: BBWI is a small-cap deep-value stock; ULTA is a mid-cap quality compounder stock. BBWI pays a dividend while ULTA does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.