Comprehensive Stock Comparison
Compare The Honest Company, Inc. (HNST) vs Ulta Beauty, Inc. (ULTA) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | ULTA | 0.8% revenue growth vs HNST's -1.9% |
| Value | ULTA | Lower P/E (26.7x vs 32.0x) |
| Quality / Margins | ULTA | 10.3% net margin vs HNST's -4.2% |
| Stability / Safety | ULTA | Beta 0.90 vs HNST's 1.44 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | ULTA | +86.9% vs HNST's -48.1% |
| Efficiency (ROA) | ULTA | 18.1% ROA vs HNST's -7.0%, ROIC 33.2% vs -13.5% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
The Honest Company is a consumer goods company that sells baby, personal care, and household products marketed as clean and sustainable. It generates revenue primarily through direct-to-consumer e-commerce sales — about 60% of total — and wholesale distribution to major retailers like Target and Amazon. Its key advantage is brand trust built on transparency about ingredients and a founder-driven reputation for safer, eco-friendly alternatives in the baby and beauty categories.
Ulta Beauty is a specialty beauty retailer operating physical stores and an e-commerce platform that sells cosmetics, skincare, haircare, and fragrance products alongside in-store salon services. It generates revenue primarily from retail product sales — including its private label Ulta Beauty Collection — with salon services contributing a smaller portion of total sales. The company's key advantage is its unique "beauty playground" format that combines mass and prestige brands under one roof alongside professional salon services, creating a differentiated omnichannel experience.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
ULTA leads in 4 of 6 categories (Financial Metrics, Profitability & Efficiency). HNST leads in 2 (Valuation Metrics, Analyst Outlook).
Financial Metrics (TTM)
ULTA is the larger business by revenue, generating $11.7B annually — 31.4x HNST's $371M. ULTA is the more profitable business, keeping 10.3% of every revenue dollar as net income compared to HNST's -4.2%. On growth, ULTA holds the edge at +9.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | HNSTThe Honest Compan… | ULTAUlta Beauty, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $371M | $11.7B |
| EBITDAEarnings before interest/tax | -$11M | $1.9B |
| Net IncomeAfter-tax profit | -$16M | $1.2B |
| Free Cash FlowCash after capex | $14M | $952M |
| Gross MarginGross profit ÷ Revenue | +33.3% | +39.0% |
| Operating MarginEBIT ÷ Revenue | -5.0% | +13.7% |
| Net MarginNet income ÷ Revenue | -4.2% | +10.3% |
| FCF MarginFCF ÷ Revenue | +3.7% | +8.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | -11.8% | +9.3% |
| EPS Growth (YoY)Latest quarter vs prior year | — | +9.1% |
Valuation Metrics
| Metric | HNSTThe Honest Compan… | ULTAUlta Beauty, Inc. |
|---|---|---|
| Market CapShares × price | $316M | $31.3B |
| Enterprise ValueMkt cap + debt − cash | $231M | $32.6B |
| Trailing P/EPrice ÷ TTM EPS | -20.00x | 27.02x |
| Forward P/EPrice ÷ next-FY EPS est. | 32.00x | 26.71x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.71x |
| EV / EBITDAEnterprise value multiple | — | 17.64x |
| Price / SalesMarket cap ÷ Revenue | 0.85x | 2.77x |
| Price / BookPrice ÷ Book value/share | 1.84x | 13.05x |
| Price / FCFMarket cap ÷ FCF | 23.21x | 32.50x |
Profitability & Efficiency
ULTA delivers a 46.1% return on equity — every $100 of shareholder capital generates $46 in annual profit, vs $-9 for HNST. HNST carries lower financial leverage with a 0.03x debt-to-equity ratio, signaling a more conservative balance sheet compared to ULTA's 0.77x.
| Metric | HNSTThe Honest Compan… | ULTAUlta Beauty, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | -9.2% | +46.1% |
| ROA (TTM)Return on assets | -7.0% | +18.1% |
| ROICReturn on invested capital | -13.5% | +33.2% |
| ROCEReturn on capital employed | -10.2% | +38.2% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 0.03x | 0.77x |
| Net DebtTotal debt minus cash | -$85M | $1.2B |
| Cash & Equiv.Liquid assets | $90M | $703M |
| Total DebtShort + long-term debt | $5M | $1.9B |
| Interest CoverageEBIT ÷ Interest expense | 9.37x | — |
Total Returns (with DRIP)
A $10,000 investment in ULTA five years ago would be worth $20,295 today (with dividends reinvested), compared to $1,750 for HNST. Over the past 12 months, ULTA leads with a +86.9% total return vs HNST's -48.1%. The 3-year compound annual growth rate (CAGR) favors ULTA at 9.7% vs HNST's 0.1% — a key indicator of consistent wealth creation.
| Metric | HNSTThe Honest Compan… | ULTAUlta Beauty, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +7.3% | +10.4% |
| 1-Year ReturnPast 12 months | -48.1% | +86.9% |
| 3-Year ReturnCumulative with dividends | +0.4% | +32.0% |
| 5-Year ReturnCumulative with dividends | -82.5% | +102.9% |
| 10-Year ReturnCumulative with dividends | -82.5% | +314.5% |
| CAGR (3Y)Annualised 3-year return | +0.1% | +9.7% |
Risk & Volatility
ULTA is the less volatile stock with a 0.90 beta — it tends to amplify market swings less than HNST's 1.44 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ULTA currently trades 95.8% from its 52-week high vs HNST's 49.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | HNSTThe Honest Compan… | ULTAUlta Beauty, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.44x | 0.90x |
| 52-Week HighHighest price in past year | $5.62 | $714.97 |
| 52-Week LowLowest price in past year | $2.07 | $309.01 |
| % of 52W HighCurrent price vs 52-week peak | +49.8% | +95.8% |
| RSI (14)Momentum oscillator 0–100 | 71.3 | 59.5 |
| Avg Volume (50D)Average daily shares traded | 1.7M | 449K |
Analyst Outlook
Wall Street rates HNST as "Hold" and ULTA as "Buy". Consensus price targets imply 7.1% upside for HNST (target: $3) vs 1.3% for ULTA (target: $694).
| Metric | HNSTThe Honest Compan… | ULTAUlta Beauty, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $3.00 | $693.73 |
| # AnalystsCovering analysts | 9 | 47 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 1 | 0 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +3.3% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | May 21 | Feb 26 | Change |
|---|---|---|---|
| The Honest Company,… (HNST) | 100 | 15.63 | -84.4% |
| Ulta Beauty, Inc. (ULTA) | 100 | 193.94 | +93.9% |
Ulta Beauty, Inc. (ULTA) returned +103% over 5 years vs The Honest Company,… (HNST)'s -83%. A $10,000 investment in ULTA 5 years ago would be worth $20,295 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Honest Company,… (HNST) | $236M | $371M | +57.6% |
| Ulta Beauty, Inc. (ULTA) | $4.9B | $11.3B | +132.7% |
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Honest Company,… (HNST) | -13.2% | -4.2% | +68.0% |
| Ulta Beauty, Inc. (ULTA) | 8.4% | 10.6% | +26.0% |
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Ulta Beauty, Inc. (ULTA) | 25 | 17.2 | -31.2% |
Ulta Beauty, Inc. has traded in a 17x–92x P/E range over 8 years; current trailing P/E is ~27x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Honest Company,… (HNST) | -0.34 | -0.14 | +58.8% |
| Ulta Beauty, Inc. (ULTA) | 6.52 | 25.34 | +288.7% |
Chart 6Free Cash Flow — 5 Years
The Honest Company, Inc. generated $14M FCF in 2025 (+135% vs 2021). Ulta Beauty, Inc. generated $964M FCF in 2024 (+9% vs 2021).
HNST vs ULTA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is HNST or ULTA a better buy right now?
Ulta Beauty, Inc. (ULTA) offers the better valuation at 27.0x trailing P/E (26.7x 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.
02Which has the better valuation — HNST or ULTA?
On forward P/E, Ulta Beauty, Inc. is actually cheaper at 26.7x.
03Which is the better long-term investment — HNST or ULTA?
Over the past 5 years, Ulta Beauty, Inc. (ULTA) delivered a total return of +102.9%, compared to -82.5% for The Honest Company, Inc. (HNST). A $10,000 investment in ULTA five years ago would be worth approximately $20K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ULTA returned +314.5% versus HNST's -82.5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — HNST or ULTA?
By beta (market sensitivity over 5 years), Ulta Beauty, Inc. (ULTA) is the lower-risk stock at 0.90β versus The Honest Company, Inc.'s 1.44β — meaning HNST is approximately 60% more volatile than ULTA relative to the S&P 500. On balance sheet safety, The Honest Company, Inc. (HNST) carries a lower debt/equity ratio of 3% versus 77% for Ulta Beauty, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — HNST or ULTA?
Ulta Beauty, Inc. (ULTA) is the more profitable company, earning 10.6% net margin versus -4.2% for The Honest Company, Inc. — meaning it keeps 10.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ULTA leads at 14.0% versus -5.0% for HNST. At the gross margin level — before operating expenses — ULTA leads at 38.8%, 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.
06Is HNST or ULTA more undervalued right now?
On forward earnings alone, Ulta Beauty, Inc. (ULTA) trades at 26.7x forward P/E versus 32.0x for The Honest Company, Inc. — 5.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HNST: 7.1% to $3.00.
07Which pays a better dividend — HNST or ULTA?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is HNST or ULTA better for a retirement portfolio?
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 0.90), +314.5% 10Y return). Both have compounded well over 10 years (ULTA: +314.5%, HNST: -82.5%), 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.
09What are the main differences between HNST and ULTA?
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. 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.
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