SBH vs COTY vs EL vs ULTA

For growth investors, Ulta Beauty, Inc.

(ULTA) is the stronger pick with 9. 7% revenue growth year-over-year, versus -8. 5% for The Estée Lauder Companies Inc. (EL). Sally Beauty Holdings, Inc. (SBH) offers the better valuation at 7. 3x trailing P/E (6. 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, Sally Beauty Holdings, Inc.

(SBH) is the cheapest at 7. 3x versus Ulta Beauty, Inc. at 20. 5x. On forward P/E, Sally Beauty Holdings, Inc. is actually cheaper at 6. 7x. 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 Sally Beauty Holdings, Inc. 's 0. 49x — 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 -75. 8% for Coty Inc. (COTY). Over 10 years, the gap is even starker: ULTA returned +152. 6% versus COTY's -83. 0%. 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 The Estée Lauder Companies Inc. 's 1. 73β — meaning EL is approximately 132% more volatile than ULTA relative to the S&P 500. On balance sheet safety, Ulta Beauty, Inc. (ULTA) carries a lower debt/equity ratio of 78% versus 2% for The Estée Lauder Companies Inc. — giving it more financial flexibility in a downturn.

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

(ULTA) is pulling ahead at 9. 7% versus -8. 5% for The Estée Lauder Companies Inc. (EL). On earnings-per-share growth, the picture is similar: Sally Beauty Holdings, Inc. grew EPS 32. 2% year-over-year, compared to -609. 8% for Coty 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 -7. 9% for The Estée Lauder Companies 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 4. 1% for COTY. At the gross margin level — before operating expenses — EL leads at 73. 9%, 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 Sally Beauty Holdings, Inc. 's 0. 49x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Sally Beauty Holdings, Inc. (SBH) trades at 6. 7x forward P/E versus 38. 4x for The Estée Lauder Companies Inc. — 31. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for COTY: 60. 4% to $4. 01.

In this comparison, EL (2.

0% yield), COTY (0. 6% yield) pay a dividend. SBH, ULTA do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Coty Inc.

(COTY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 08), 0. 6% yield). Both have compounded well over 10 years (COTY: -83. 0%, SBH: -54. 2%), 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.

These companies operate in different sectors (SBH (Consumer Cyclical) and COTY (Consumer Defensive) and EL (Consumer Defensive) and ULTA (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: SBH is a small-cap deep-value stock; COTY is a small-cap quality compounder stock; EL is a mid-cap quality compounder stock; ULTA is a mid-cap quality compounder stock. COTY, EL pay a dividend while SBH, ULTA do 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.