Bath & Body Works Inc. (BBWI)vsUlta Beauty Inc (ULTA)
BBWI
Bath & Body Works Inc.
$18.19
+0.72%
CONSUMER CYCLICAL · Cap: $3.70B
ULTA
Ulta Beauty Inc
$526.14
+2.12%
CONSUMER CYCLICAL · Cap: $23.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Ulta Beauty Inc generates 70% more annual revenue ($12.39B vs $7.29B). ULTA leads profitability with a 9.3% profit margin vs 8.9%. BBWI appears more attractively valued with a PEG of 0.78. ULTA earns a higher WallStSmart Score of 55/100 (C-).
BBWI
Buy51
out of 100
Grade: C-
ULTA
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-6.0%
Fair Value
$21.15
Current Price
$18.19
$2.96 premium
Margin of Safety
-291.5%
Fair Value
$174.49
Current Price
$526.14
$351.65 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Growing faster than its price suggests
Strong operational efficiency at 22.5%
Every $100 of equity generates 44 in profit
Safe zone — low bankruptcy risk
Areas to Watch
Grey zone — moderate risk
ROE of 0.0% — below average capital efficiency
Revenue declined 2.3%
Earnings declined 4.7%
Expensive relative to growth rate
Trading at 8.3x book value
Earnings declined 5.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : BBWI
The strongest argument for BBWI centers on P/E Ratio, PEG Ratio, Operating Margin. PEG of 0.78 suggests the stock is reasonably priced for its 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 : BBWI
The primary concerns for BBWI are Altman Z-Score, Return on Equity, Revenue Growth.
Bear Case : ULTA
The primary concerns for ULTA are PEG Ratio, Price/Book, EPS Growth.
Key Dynamics to Monitor
BBWI carries more volatility with a beta of 1.42 — 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 51/100) and 11.8% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Bath & Body Works Inc.
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Bath & Body Works Inc. (BBWI) is a leading specialty retailer recognized for its extensive range of high-quality personal care products, including body care, skincare, fragrances, and home fragrances. With a robust omnichannel presence, the company effectively marries a strong physical retail footprint with a dynamic online platform, fostering exceptional customer loyalty and engagement. Bath & Body Works continues to drive innovation and adapt to shifting consumer preferences through targeted seasonal marketing efforts, enhancing its competitive position in the rapidly evolving beauty and personal care industry. As a subsidiary of L Brands, Inc., it benefits from synergies and shared resources while underscoring its commitment to sustainability and community involvement, positioning it strategically for future growth and market leadership.
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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