Best Buy Co. Inc (BBY)vsSally Beauty Holdings Inc (SBH)
BBY
Best Buy Co. Inc
$90.80
+3.08%
CONSUMER CYCLICAL · Cap: $18.73B
SBH
Sally Beauty Holdings Inc
$15.96
+1.01%
CONSUMER CYCLICAL · Cap: $1.48B
Smart Verdict
WallStSmart Research — data-driven comparison
Best Buy Co. Inc generates 1032% more annual revenue ($42.20B vs $3.73B). SBH leads profitability with a 5.2% profit margin vs 3.0%. SBH appears more attractively valued with a PEG of 0.71. SBH earns a higher WallStSmart Score of 69/100 (B-).
BBY
Buy60
out of 100
Grade: C+
SBH
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.8%
Fair Value
$41.72
Current Price
$90.80
$49.08 premium
Margin of Safety
+0.5%
Fair Value
$15.29
Current Price
$15.96
$0.67 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 40 in profit
Earnings expanding 70.1% YoY
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Attractively priced relative to earnings
Every $100 of equity generates 22 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 25.0% YoY
Areas to Watch
Expensive relative to growth rate
3.6% revenue growth
3.0% margin — thin
Operating margin of 3.9%
0.2% revenue growth
Smaller company, higher risk/reward
5.2% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : BBY
The strongest argument for BBY centers on Return on Equity, EPS Growth, Altman Z-Score.
Bull Case : SBH
The strongest argument for SBH centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.71 suggests the stock is reasonably priced for its growth.
Bear Case : BBY
The primary concerns for BBY are PEG Ratio, Revenue Growth, Profit Margin. Thin 3.0% margins leave little buffer for downturns.
Bear Case : SBH
The primary concerns for SBH are Revenue Growth, Market Cap, Profit Margin. Debt-to-equity of 1.74 is elevated, increasing financial risk.
Key Dynamics to Monitor
BBY carries more volatility with a beta of 1.30 — expect wider price swings.
BBY is growing revenue faster at 3.6% — sustainability is the question.
BBY generates stronger free cash flow (737M), providing more financial flexibility.
Monitor SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SBH scores higher overall (69/100 vs 60/100). Both earn "Strong 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.
Best Buy Co. Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota.
Sally Beauty Holdings Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Sally Beauty Holdings, Inc. is a specialty retailer and distributor of professional beauty products. The company is headquartered in Denton, Texas.
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