Comparing Ulta Beauty (NASDAQ:ULTA) & MarineMax (NYSE:HZO)

Ulta Beauty (NASDAQ:ULTA) and MarineMax (NYSE:HZO) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Institutional & Insider Ownership

90.4% of Ulta Beauty shares are held by institutional investors. Comparatively, 92.9% of MarineMax shares are held by institutional investors. 0.2% of Ulta Beauty shares are held by company insiders. Comparatively, 4.0% of MarineMax shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ulta Beauty	10.45%	49.73%	20.15%
MarineMax	2.35%	5.01%	1.89%

Volatility & Risk

Ulta Beauty has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, MarineMax has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.

Valuation and Earnings

This table compares Ulta Beauty and MarineMax”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ulta Beauty	$11.30 billion	1.90	$1.20 billion	$25.60	18.63
MarineMax	$2.43 billion	0.24	$38.07 million	$2.45	11.03

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

Analyst Recommendations

This is a breakdown of current ratings for Ulta Beauty and MarineMax, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ulta Beauty	1	11	13	0	2.48
MarineMax	0	0	4	1	3.20

Ulta Beauty presently has a consensus target price of $465.04, indicating a potential downside of 2.47%. MarineMax has a consensus target price of $33.25, indicating a potential upside of 23.04%. Given MarineMax’s stronger consensus rating and higher probable upside, analysts plainly believe MarineMax is more favorable than Ulta Beauty.

Summary

Ulta Beauty beats MarineMax on 9 of the 15 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 MarineMax

MarineMax, Inc. operates as a recreational boat and yacht retailer and superyacht services company in the United States. It operates in two segments, Retail Operations and Product Manufacturing. The company sells new and used recreational boats, including pleasure and fishing boats, mega-yachts, yachts, sport cruisers, motor yachts, e-power yachts, pontoon boats, ski boats, jet boats, and other recreational boats. It also offers marine parts and accessories comprising marine electronics; dock and anchoring products that include boat fenders, lines, and anchors; boat covers; trailer parts; water sport accessories, which comprise tubes, lines, wakeboards, and skis; engine parts; oils; lubricants; steering and control systems; corrosion control products and service products; high-performance accessories, including propellers and instruments; and a line of boating accessories, such as life jackets, inflatables, and water sports equipment. In addition, the company provides novelty items, such as shirts, caps, and license plates; marine engines and equipment; maintenance, repair, and slip and storage services; and boat or yacht brokerage services, as well as yacht charters and power catamarans. Further, it offers new or used boat finance services; arranges insurance coverage, including boat property, disability, undercoating, gel sealant, fabric protection, trailer tire and wheel protection, and casualty insurance coverage; and manufactures and sells sport yachts and yachts. Additionally, the company operates MarineMax vacations in Tortola and British Virgin Islands. It also markets and sells its products through offsite locations and print catalog. MarineMax, Inc. was incorporated in 1998 and is based in Clearwater, Florida.