Comprehensive Stock Comparison
Compare Sally Beauty Holdings, Inc. (SBH) 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 SBH's -0.4% |
| Value | SBH | Lower P/E (7.8x vs 26.7x), PEG 0.56 vs 1.69 |
| Quality / Margins | ULTA | 10.3% net margin vs SBH's 4.9% |
| Stability / Safety | SBH | Beta 0.85 vs ULTA's 0.90 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | ULTA | +86.9% vs SBH's +78.2% |
| Efficiency (ROA) | ULTA | 18.1% ROA vs SBH's 6.3%, ROIC 33.2% vs 11.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Sally Beauty Holdings is a specialty retailer and distributor of professional beauty supplies operating through two main segments. The company generates revenue primarily from its Sally Beauty Supply stores serving retail customers (~60% of sales) and its Beauty Systems Group segment selling directly to salons and professionals through stores and sales forces (~40%). Its competitive advantage lies in its extensive physical store network—nearly 4,800 locations—and dual-channel approach that serves both retail consumers and professional salon clients.
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 3 of 6 categories (Financial Metrics, Profitability & Efficiency). SBH leads in 2 (Valuation Metrics, Analyst Outlook). 1 tied.
Financial Metrics (TTM)
ULTA is the larger business by revenue, generating $11.7B annually — 3.1x SBH's $3.7B. ULTA is the more profitable business, keeping 10.3% of every revenue dollar as net income compared to SBH's 4.9%. On growth, ULTA holds the edge at +9.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | SBHSally Beauty Hold… | ULTAUlta Beauty, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $3.7B | $11.7B |
| EBITDAEarnings before interest/tax | $378M | $1.9B |
| Net IncomeAfter-tax profit | $180M | $1.2B |
| Free Cash FlowCash after capex | $253M | $952M |
| Gross MarginGross profit ÷ Revenue | +51.7% | +39.0% |
| Operating MarginEBIT ÷ Revenue | +8.2% | +13.7% |
| Net MarginNet income ÷ Revenue | +4.9% | +10.3% |
| FCF MarginFCF ÷ Revenue | +6.8% | +8.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +0.6% | +9.3% |
| EPS Growth (YoY)Latest quarter vs prior year | -22.4% | +9.1% |
Valuation Metrics
At 8.5x trailing earnings, SBH trades at a 69% valuation discount to ULTA's 27.0x P/E. Adjusting for growth (PEG ratio), SBH offers better value at 0.62x vs ULTA's 1.71x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | SBHSally Beauty Hold… | ULTAUlta Beauty, Inc. |
|---|---|---|
| Market CapShares × price | $1.6B | $31.3B |
| Enterprise ValueMkt cap + debt − cash | $3.0B | $32.6B |
| Trailing P/EPrice ÷ TTM EPS | 8.50x | 27.02x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.77x | 26.71x |
| PEG RatioP/E ÷ EPS growth rate | 0.62x | 1.71x |
| EV / EBITDAEnterprise value multiple | 6.97x | 17.64x |
| Price / SalesMarket cap ÷ Revenue | 0.42x | 2.77x |
| Price / BookPrice ÷ Book value/share | 2.10x | 13.05x |
| Price / FCFMarket cap ÷ FCF | 9.07x | 32.50x |
Profitability & Efficiency
ULTA delivers a 46.1% return on equity — every $100 of shareholder capital generates $46 in annual profit, vs $22 for SBH. ULTA carries lower financial leverage with a 0.77x debt-to-equity ratio, signaling a more conservative balance sheet compared to SBH's 1.97x. On the Piotroski fundamental quality scale (0–9), SBH scores 8/9 vs ULTA's 5/9, reflecting strong financial health.
| Metric | SBHSally Beauty Hold… | ULTAUlta Beauty, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +21.9% | +46.1% |
| ROA (TTM)Return on assets | +6.3% | +18.1% |
| ROICReturn on invested capital | +11.4% | +33.2% |
| ROCEReturn on capital employed | +14.6% | +38.2% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 5 |
| Debt / EquityFinancial leverage | 1.97x | 0.77x |
| Net DebtTotal debt minus cash | $1.4B | $1.2B |
| Cash & Equiv.Liquid assets | $149M | $703M |
| Total DebtShort + long-term debt | $1.6B | $1.9B |
| Interest CoverageEBIT ÷ Interest expense | 3.74x | — |
Total Returns (with DRIP)
A $10,000 investment in ULTA five years ago would be worth $20,295 today (with dividends reinvested), compared to $9,079 for SBH. Over the past 12 months, ULTA leads with a +86.9% total return vs SBH's +78.2%. The 3-year compound annual growth rate (CAGR) favors ULTA at 9.7% vs SBH's -0.0% — a key indicator of consistent wealth creation.
| Metric | SBHSally Beauty Hold… | ULTAUlta Beauty, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +10.9% | +10.4% |
| 1-Year ReturnPast 12 months | +78.2% | +86.9% |
| 3-Year ReturnCumulative with dividends | -0.1% | +32.0% |
| 5-Year ReturnCumulative with dividends | -9.2% | +102.9% |
| 10-Year ReturnCumulative with dividends | -49.1% | +314.5% |
| CAGR (3Y)Annualised 3-year return | -0.0% | +9.7% |
Risk & Volatility
SBH is the less volatile stock with a 0.85 beta — it tends to amplify market swings less than ULTA's 0.90 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 SBH's 89.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | SBHSally Beauty Hold… | ULTAUlta Beauty, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.85x | 0.90x |
| 52-Week HighHighest price in past year | $17.92 | $714.97 |
| 52-Week LowLowest price in past year | $7.54 | $309.01 |
| % of 52W HighCurrent price vs 52-week peak | +89.7% | +95.8% |
| RSI (14)Momentum oscillator 0–100 | 57.7 | 59.5 |
| Avg Volume (50D)Average daily shares traded | 1.5M | 449K |
Analyst Outlook
Wall Street rates SBH as "Hold" and ULTA as "Buy". Consensus price targets imply 10.5% upside for SBH (target: $18) vs 1.3% for ULTA (target: $694).
| Metric | SBHSally Beauty Hold… | ULTAUlta Beauty, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $17.75 | $693.73 |
| # AnalystsCovering analysts | 30 | 47 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 1 | 0 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +3.4% | +3.3% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Sally Beauty Holdin… (SBH) | 100 | 131.5 | +31.5% |
| Ulta Beauty, Inc. (ULTA) | 100 | 255.02 | +155.0% |
Ulta Beauty, Inc. (ULTA) returned +103% over 5 years vs Sally Beauty Holdin… (SBH)'s -9%. 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 |
|---|---|---|---|
| Sally Beauty Holdin… (SBH) | $4.0B | $3.7B | -6.4% |
| Ulta Beauty, Inc. (ULTA) | $4.9B | $11.3B | +132.7% |
Sally Beauty Holdings, Inc.'s revenue grew from $4.0B (2016) to $3.7B (2025) — a -0.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Sally Beauty Holdin… (SBH) | 5.6% | 5.3% | -6.2% |
| Ulta Beauty, Inc. (ULTA) | 8.4% | 10.6% | +26.0% |
Sally Beauty Holdings, Inc.'s net margin went from 6% (2016) to 5% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Sally Beauty Holdin… (SBH) | 12 | 7.5 | -37.5% |
| Ulta Beauty, Inc. (ULTA) | 25 | 17.2 | -31.2% |
Sally Beauty Holdings, Inc. has traded in a 7x–13x P/E range over 9 years; current trailing P/E is ~9x. 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 |
|---|---|---|---|
| Sally Beauty Holdin… (SBH) | 1.5 | 1.89 | +26.0% |
| Ulta Beauty, Inc. (ULTA) | 6.52 | 25.34 | +288.7% |
Sally Beauty Holdings, Inc.'s EPS grew from $1.50 (2016) to $1.89 (2025) — a 3% CAGR.
Chart 6Free Cash Flow — 5 Years
Sally Beauty Holdings, Inc. generated $173M FCF in 2025 (-44% vs 2021). Ulta Beauty, Inc. generated $964M FCF in 2024 (+9% vs 2021).
SBH vs ULTA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is SBH or ULTA a better buy right now?
Sally Beauty Holdings, Inc. (SBH) offers the better valuation at 8.5x trailing P/E (7.8x 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 — SBH or ULTA?
On trailing P/E, Sally Beauty Holdings, Inc. (SBH) is the cheapest at 8.5x versus Ulta Beauty, Inc. at 27.0x. On forward P/E, Sally Beauty Holdings, Inc. is actually cheaper at 7.8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Sally Beauty Holdings, Inc. wins at 0.56x versus Ulta Beauty, Inc.'s 1.69x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — SBH or ULTA?
Over the past 5 years, Ulta Beauty, Inc. (ULTA) delivered a total return of +102.9%, compared to -9.2% for Sally Beauty Holdings, Inc. (SBH). 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 SBH's -49.1%. 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 — SBH or ULTA?
By beta (market sensitivity over 5 years), Sally Beauty Holdings, Inc. (SBH) is the lower-risk stock at 0.85β versus Ulta Beauty, Inc.'s 0.90β — meaning ULTA is approximately 5% more volatile than SBH relative to the S&P 500. On balance sheet safety, Ulta Beauty, Inc. (ULTA) carries a lower debt/equity ratio of 77% versus 197% for Sally Beauty Holdings, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — SBH or ULTA?
Ulta Beauty, Inc. (ULTA) is the more profitable company, earning 10.6% net margin versus 5.3% for Sally Beauty Holdings, 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 8.9% for SBH. At the gross margin level — before operating expenses — SBH leads at 51.6%, 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 SBH or ULTA more undervalued right now?
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, Sally Beauty Holdings, Inc. (SBH) is the more undervalued stock at a PEG of 0.56x versus Ulta Beauty, Inc.'s 1.69x. 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 7.8x forward P/E versus 26.7x for Ulta Beauty, Inc. — 18.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SBH: 10.5% to $17.75.
07Which pays a better dividend — SBH 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 SBH 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%, SBH: -49.1%), 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 SBH 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. In terms of investment character: SBH is a small-cap deep-value stock; ULTA is a mid-cap quality compounder stock. 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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