WallStSmart

Arko Corp (ARKO)vsUlta Beauty Inc (ULTA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ulta Beauty Inc generates 89% more annual revenue ($12.39B vs $6.55B). ULTA leads profitability with a 9.3% profit margin vs 0.4%. ULTA trades at a lower P/E of 20.1x. ULTA earns a higher WallStSmart Score of 55/100 (C-).

ARKO

Hold

46

out of 100

Grade: D+

Growth: 4.7Profit: 4.0Value: 7.0Quality: 5.0

ULTA

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 7.5Value: 7.3Quality: 6.3
Piotroski: 4/9Altman Z: 3.94
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARKOUndervalued (+10.3%)

Margin of Safety

+10.3%

Fair Value

$7.02

Current Price

$5.51

$1.51 discount

UndervaluedFair: $7.02Overvalued
ULTASignificantly Overvalued (-291.5%)

Margin of Safety

-291.5%

Fair Value

$174.49

Current Price

$526.14

$351.65 premium

UndervaluedFair: $174.49Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARKO2 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

EPS GrowthGrowth
42.9%8/10

Earnings expanding 42.9% YoY

ULTA2 strengths · Avg: 10.0/10
Return on EquityProfitability
43.6%10/10

Every $100 of equity generates 44 in profit

Altman Z-ScoreHealth
3.9410/10

Safe zone — low bankruptcy risk

Areas to Watch

ARKO4 concerns · Avg: 3.3/10
P/E RatioValuation
33.4x4/10

Premium valuation, high expectations priced in

Market CapQuality
$558.27M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

Profit MarginProfitability
0.4%3/10

0.4% margin — thin

ULTA3 concerns · Avg: 3.3/10
PEG RatioValuation
2.244/10

Expensive relative to growth rate

Price/BookValuation
8.3x4/10

Trading at 8.3x book value

EPS GrowthGrowth
-5.4%2/10

Earnings declined 5.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : ARKO

The strongest argument for ARKO centers on Price/Book, EPS Growth.

Bull Case : ULTA

The strongest argument for ULTA centers on Return on Equity, Altman Z-Score. Revenue growth of 11.8% demonstrates continued momentum.

Bear Case : ARKO

The primary concerns for ARKO are P/E Ratio, Market Cap, Return on Equity. Thin 0.4% margins leave little buffer for downturns.

Bear Case : ULTA

The primary concerns for ULTA are PEG Ratio, Price/Book, EPS Growth.

Key Dynamics to Monitor

ULTA carries more volatility with a beta of 0.85 — expect wider price swings.

ULTA is growing revenue faster at 11.8% — sustainability is the question.

ULTA generates stronger free cash flow (907M), providing more financial flexibility.

Monitor SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ULTA scores higher overall (55/100 vs 46/100) and 11.8% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Arko Corp

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Arko Corp. The company is headquartered in Richmond, Virginia.

Ulta Beauty Inc

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Ulta Beauty, Inc., formerly known as Ulta Salon, Cosmetics & Fragrance Inc., is an American chain of beauty stores headquartered in Bolingbrook, Illinois. Ulta Beauty carries cosmetics and skincare brands, men's and women's fragrances, nail products, bath and body products, beauty tools and haircare products.

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