Compare Olaplex Holdings, Inc. (OLPX) vs Ulta Beauty, Inc. (ULTA) Stock

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.

On trailing P/E, Ulta Beauty, Inc. (ULTA) is the cheapest at 27.0x versus Olaplex Holdings, Inc. at 54.9x. On forward P/E, Olaplex Holdings, Inc. is actually cheaper at 19.1x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Ulta Beauty, Inc. (ULTA) delivered a total return of +102.9%, compared to -93.4% for Olaplex Holdings, Inc. (OLPX). 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 OLPX's -93.4%. 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 0.90β versus Olaplex Holdings, Inc.'s 1.40β — meaning OLPX is approximately 56% more volatile than ULTA relative to the S&P 500. On balance sheet safety, Olaplex Holdings, Inc. (OLPX) carries a lower debt/equity ratio of 74% versus 77% for Ulta Beauty, Inc. — giving it more financial flexibility in a downturn.

Ulta Beauty, Inc. (ULTA) is the more profitable company, earning 10.6% net margin versus 4.6% for Olaplex Holdings, Inc. — meaning it keeps 10.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: OLPX leads at 15.8% versus 14.0% for ULTA. At the gross margin level — before operating expenses — OLPX leads at 69.2%, 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.

On forward earnings alone, Olaplex Holdings, Inc. (OLPX) trades at 19.1x forward P/E versus 26.7x for Ulta Beauty, Inc. — 7.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for OLPX: 8.7% to $1.75.

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.

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%, OLPX: -93.4%), 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. 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.