ULTA vs COTY

For growth investors, Ulta Beauty, Inc.

(ULTA) is the stronger pick with 9. 7% revenue growth year-over-year, versus -3. 7% for Coty Inc. (COTY). Ulta Beauty, Inc. (ULTA) offers the better valuation at 20. 9x trailing P/E (18. 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 forward P/E, Coty Inc.

is actually cheaper at 9. 7x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Ulta Beauty, Inc.

(ULTA) delivered a total return of +68. 8%, compared to -73. 5% for Coty Inc. (COTY). Over 10 years, the gap is even starker: ULTA returned +156. 4% versus COTY's -82. 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 Coty Inc. 's 1. 08β — meaning COTY is approximately 45% 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 107% for Coty 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 -3. 7% for Coty Inc. (COTY). On earnings-per-share growth, the picture is similar: Ulta Beauty, Inc. grew EPS 1. 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 -6. 2% for Coty 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 — COTY leads at 64. 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.

On forward earnings alone, Coty Inc.

(COTY) trades at 9. 7x forward P/E versus 18. 7x for Ulta Beauty, Inc. — 9. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for COTY: 51. 3% to $4. 01.

In this comparison, COTY (0.

6% yield) pays a dividend. ULTA does 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: -82. 6%, ULTA: +156. 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.

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

COTY 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.