Sally Beauty (NYSE:SBH) versus Match Group (NYSE:MTCH) Financial Contrast

Sally Beauty (NYSE:SBH) and Match Group (NASDAQ:MTCH) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Profitability

This table compares Sally Beauty and Match Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sally Beauty 5.45% -491.27% 9.14%
Match Group 2.69% 9.24% 4.16%

Earnings & Valuation

This table compares Sally Beauty and Match Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sally Beauty $3.88 billion 0.36 $271.62 million $2.26 5.54
Match Group $4.76 billion 1.72 $431.13 million $4.53 21.26

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

Institutional & Insider Ownership

30.7% of Match Group shares are held by institutional investors. 2.6% of Sally Beauty shares are held by insiders. Comparatively, 3.0% of Match Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Sally Beauty and Match Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sally Beauty 1 4 1 0 2.00
Match Group 0 7 14 0 2.67

Sally Beauty presently has a consensus target price of $12.17, suggesting a potential downside of 2.74%. Match Group has a consensus target price of $94.80, suggesting a potential downside of 1.58%. Given Match Group’s stronger consensus rating and higher probable upside, analysts plainly believe Match Group is more favorable than Sally Beauty.

Risk & Volatility

Sally Beauty has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Match Group has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Summary

Match Group beats Sally Beauty on 11 of the 14 factors compared between the two stocks.

About Sally Beauty

Sally Beauty Holdings, Inc. operates as a specialty retailer and distributor of professional beauty supplies. The company operates through two segments, Sally Beauty Supply and Beauty Systems Group. The Sally Beauty Supply segment offers beauty products, including hair color and care, skin and nail care, styling tools, and other beauty products for retail customers and salon professionals. This segment also provides products under third-party brands, such as OPI, China Glaze, Wella, Clairol, Conair, and Hot Shot Tools, as well as exclusive-label brand merchandise. As of September 30, 2018, it operated 3,744 company-operated retail stores with 2,849 stores in the United States, including Puerto Rico; and 895 company-operated retail stores located in Canada, Mexico, the United Kingdom, Ireland, Belgium, France, Germany, the Netherlands, Spain, Chile, and Peru under the Sally Beauty banner, as well as 17 franchised stores in the United Kingdom, Belgium, and other European countries. The Beauty Systems Group segment offers professional beauty products, such as hair color and care, skin and nail care, styling tools, and other beauty items directly to salons and salon professionals through its professional-only stores, e-commerce Websites, and sales force, as well as through franchised stores. This segment also sells products under third-party brands, such as Paul Mitchell, Wella, Schwarzkopf, Kenra, Goldwell, Joico, and Chi. It operated 1,228 company-operated stores with 1,104 located in the United States, including Puerto Rico; and 124 retail stores located in Canada under the CosmoProf banner in the United States and Canada, as well as 167 franchised stores under the Armstrong McCall name in North America. The company also distributes its products through full-service/exclusive distributors, open-line distributors, direct sales, and mega-salon stores. Sally Beauty Holdings, Inc. was founded in 1964 and is headquartered in Denton, Texas.

About Match Group

Match Group, Inc. provides dating products worldwide. It operates a portfolio of brands, including Tinder, Match, PlentyOfFish, Meetic, OkCupid, OurTime, Pairs, and Hinge, as well as other brands. Match Group, Inc. offers its dating products through its applications and Websites in approximately 40 languages. The company was incorporated in 2009 and is headquartered in Dallas, Texas. Match Group, Inc. operates as a subsidiary of IAC/InterActiveCorp.

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