Head-To-Head Comparison: Leslie’s (NASDAQ:LESL) & Ulta Beauty (NASDAQ:ULTA)

Leslie’s (NASDAQ:LESLGet Rating) and Ulta Beauty (NASDAQ:ULTAGet Rating) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Risk and Volatility

Leslie’s has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Ulta Beauty has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Valuation and Earnings

This table compares Leslie’s and Ulta Beauty’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Leslie’s $1.34 billion 2.06 $126.63 million $0.72 21.06
Ulta Beauty $8.63 billion 2.33 $985.84 million $20.21 19.24

Ulta Beauty has higher revenue and earnings than Leslie’s. Ulta Beauty is trading at a lower price-to-earnings ratio than Leslie’s, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Leslie’s and Ulta Beauty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Leslie’s 9.97% -48.04% 15.88%
Ulta Beauty 12.03% 60.83% 21.72%

Institutional and Insider Ownership

89.2% of Ulta Beauty shares are held by institutional investors. 3.6% of Leslie’s shares are held by insiders. Comparatively, 2.0% of Ulta Beauty shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Leslie’s and Ulta Beauty, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leslie’s 0 1 9 0 2.90
Ulta Beauty 0 7 13 1 2.71

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 higher probable upside, analysts plainly believe Leslie’s is more favorable than Ulta Beauty.

Summary

Ulta Beauty beats Leslie’s on 11 of the 15 factors compared between the two stocks.

About Leslie’s

(Get Rating)

Leslie's, Inc. operates as 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; pool covers, including winter, solar and safety covers, leaf nets, cover reels, and cover alternatives; pool equipment, which comprise pool cleaners, pool pumps, pool filters, pool heating, and lighting; and pools, such as above ground pools, soft side pools, above ground pools liners and equipment, ladders and rails, and diving boards. The company also provides pool maintenance products, including pool closing and opening supplies, filter catridges, chlorine floaters, backwash and vacuum hoses, and cleaning attachments; parts, such as automatic pool cleaner parts, pool filter and pump parts, and pool heater and heat pump parts; and safety, recreational, and fitness-related products. In addition, it provides pool equipment and repair services. The company markets its products through 952 company operated locations in 38 states and e-commerce websites. It serves the residential, professional, and commercial consumers. The company was founded in 1963 and is headquartered in Phoenix, Arizona.

About Ulta Beauty

(Get Rating)

Ulta Beauty, Inc. operates as a retailer of beauty products in the United States. The company's stores offer cosmetics, fragrances, skincare and haircare products, bath and body products, and salon styling tools; professional hair products; salon services, including hair, skin, makeup, and brow services; and nail services. It also provides its private label products, such as the Ulta Beauty Collection branded cosmetics, skincare, and bath products, as well as Ulta Beauty branded products; and the Ulta Beauty branded gifts. As of March 10, 2022, the company operated 1,308 retail stores across 50 states. It also distributes its products through its website ulta.com; and mobile applications. 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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