Head-to-head comparison: Leslie’s (NASDAQ:LESL) and Ulta Beauty (NASDAQ:ULTA)
Leslie’s (NASDAQ:LESL – Get Rating) and Ulta Beauty (NASDAQ:ULTA – Get Rating) are both consumer staples companies, but which company is better? We will compare the two companies based on their risk strength, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.
Risk and Volatility
Leslie’s has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. In comparison, Ulta Beauty has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.
Valuation and benefits
This chart compares the revenue, earnings per share (EPS), and valuation of Leslie and Ulta Beauty.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|At Leslie’s||$1.34 billion||2.06||$126.63 million||$0.72||21.06|
|Ultimate Beauty||$8.63 billion||2.33||$985.84 million||$20.21||19.24|
Ulta Beauty has higher revenue and profit than Leslie. Ulta Beauty trades at a lower price-to-earnings ratio than Leslie, indicating that it is currently the more affordable of the two stocks.
This table compares the net margins, return on equity and return on assets of Leslie and Ulta Beauty.
|Net margins||Return on equity||return on assets|
Institutional and Insider Ownership
89.2% of Ulta Beauty shares are held by institutional investors. 3.6% of Leslie shares are held by insiders. By comparison, 2.0% of Ulta Beauty shares are held by insiders. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a stock will outperform the market over the long term.
This is a summary of current recommendations for Leslie’s and Ulta Beauty, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
Leslie’s currently has a consensus target price of $27.91, suggesting a potential upside of 84.10%. Ulta Beauty has a consensus target price of $460.05, suggesting a potential upside of 18.29%. Given Leslie’s stronger consensus rating and likely higher upside, analysts clearly think Leslie is more favorable than Ulta Beauty.
Ulta Beauty beats Leslie’s on 11 out of 15 factors compared between the two stocks.
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Leslie’s, Inc. is a direct-to-consumer pool and spa care brand in the United States. The company markets and sells pool and spa supplies and related products and services. It offers pool chemicals consisting of chlorine, sanitizers, water balancers, specialty chemicals and algae control; swimming pool covers, including winter, solar and safety covers, leaf nets, cover reels and cover alternatives; pool equipment, which includes pool cleaners, pool pumps, pool filters, pool heaters and pool lights; and swimming pools, such as above ground pools, soft sided pools, above ground pool liners and equipment, ladders and rails and diving boards. The Company also provides pool maintenance products, including pool closing and opening supplies, filter cartridges, chlorine floaters, backwash and suction hoses and cleaning accessories. ; parts, such as automatic pool cleaner parts, pool filter and pool pump parts, and pool heater and heat pump parts; and products related to safety, recreation and fitness. Additionally, it provides swimming pool equipment and repair services. The company markets its products through 952 company-operated locations in 38 states and e-commerce websites. It serves residential, professional and commercial consumers. The company was founded in 1963 and is based in Phoenix, Arizona.
About Ulta Beauty
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Ulta Beauty, Inc. operates as a retailer of beauty products in the United States. The Company’s stores offer cosmetics, fragrances, skin and hair care products, bath and body products, and salon styling tools; professional hair products; salon services, including hairdressing, skincare, make-up and eyebrow services; and manicure services. It also provides its private label products, such as Ulta Beauty Collection brand cosmetics, skin care and bath products, as well as Ulta Beauty brand products; and Ulta Beauty branded gifts. As of March 10, 2022, the company operated 1,308 retail stores in 50 states. It also distributes its products through its website ulta.com; and mobile apps. The company was formerly known as Ulta Salon, Cosmetics & Fragrance, Inc. and changed its name to Ulta Beauty, Inc. in January 2017. Ulta Beauty, Inc. was incorporated in 1990 and is based in Bolingbrook, Illinois.
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