Ulta Beauty (NASDAQ:ULTA – Get Free Report) and Bath & Body Works (NYSE:BBWI – Get Free Report) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.
Volatility & Risk
Ulta Beauty has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Bath & Body Works has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Ulta Beauty and Bath & Body Works, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ulta Beauty | 1 | 12 | 11 | 0 | 2.42 |
| Bath & Body Works | 1 | 6 | 9 | 0 | 2.50 |
Institutional and Insider Ownership
90.4% of Ulta Beauty shares are held by institutional investors. Comparatively, 95.1% of Bath & Body Works shares are held by institutional investors. 0.4% of Ulta Beauty shares are held by insiders. Comparatively, 0.3% of Bath & Body Works shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Ulta Beauty and Bath & Body Works’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ulta Beauty | 10.58% | 51.95% | 20.88% |
| Bath & Body Works | 12.43% | -44.03% | 14.45% |
Earnings & Valuation
This table compares Ulta Beauty and Bath & Body Works”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ulta Beauty | $11.36 billion | 1.75 | $1.29 billion | $24.99 | 17.14 |
| Bath & Body Works | $7.43 billion | 1.07 | $878.00 million | $4.10 | 8.97 |
Ulta Beauty has higher revenue and earnings than Bath & Body Works. Bath & Body Works is trading at a lower price-to-earnings ratio than Ulta Beauty, indicating that it is currently the more affordable of the two stocks.
Summary
Ulta Beauty beats Bath & Body Works on 9 of the 14 factors compared between the two stocks.
About Ulta Beauty
Ulta Beauty, Inc. operates as a specialty beauty retailer in the United States. The company offers branded and private label beauty products, including cosmetics, fragrance, haircare, skincare, bath and body products, professional hair products, and salon styling tools through its Ulta Beauty stores, shop-in-shops, Ulta.com website, and its mobile applications. It also offers beauty services, including hair, makeup, brow, and skin services at its stores. 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.
About Bath & Body Works
Bath & Body Works, Inc. operates a specialty retailer of home fragrance, body care, and soaps and sanitizer products. It sells its products under the Bath & Body Works, White Barn, and other brand names through retail stores and e-commerce sites located in the United States and Canada, as well as through international stores operated by partners under franchise, license, and wholesale arrangements. The company was formerly known as L Brands, Inc. and changed its name to Bath & Body Works, Inc. in August 2021. Bath & Body Works, Inc. was founded in 1963 and is headquartered in Columbus, Ohio.
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