Head-To-Head Analysis: SharkNinja (NYSE:SN) & Ulta Beauty (NASDAQ:ULTA)

Ulta Beauty (NASDAQ:ULTA) and SharkNinja (NYSE:SN) are both large-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Ulta Beauty and SharkNinja, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ulta Beauty	1	12	12	0	2.44
SharkNinja	0	1	7	0	2.88

Ulta Beauty presently has a consensus target price of $469.0870, indicating a potential downside of 8.91%. SharkNinja has a consensus target price of $129.1250, indicating a potential upside of 10.94%. Given SharkNinja’s stronger consensus rating and higher possible upside, analysts clearly believe SharkNinja is more favorable than Ulta Beauty.

Insider & Institutional Ownership

90.4% of Ulta Beauty shares are held by institutional investors. Comparatively, 34.8% of SharkNinja shares are held by institutional investors. 0.2% of Ulta Beauty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Ulta Beauty and SharkNinja”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ulta Beauty	$11.42 billion	2.03	$1.20 billion	$25.60	20.12
SharkNinja	$5.53 billion	2.97	$438.70 million	$3.16	36.83

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

Volatility & Risk

Ulta Beauty has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, SharkNinja has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500.

Profitability

This table compares Ulta Beauty and SharkNinja’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%
SharkNinja	7.86%	28.89%	12.86%

Summary

Ulta Beauty beats SharkNinja 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 SharkNinja

SharkNinja, Inc., a product design and technology company, engages in the provision of various solutions for consumers worldwide. It offers cleaning appliances, including corded and cordless vacuums, including handheld and robotic vacuums, as well as other floorcare products comprising steam mops, wet/dry cleaning floor products, and carpet extraction; cooking and beverage appliances, such as air fryers, multi-cookers, outdoor and countertop grills and ovens, coffee systems, carbonation, cookware, cutlery, kettles, toasters and bakeware; food preparation appliances comprising blenders, food processors, ice cream makers, and juicers; and beauty appliances, such as hair dryers and stylers, as well as home environment products comprising air purifiers and humidifiers. The company sells its products through traditional brick-and-mortar retail channels and e-commerce channels, distributors, and direct-to-consumer channels under the Shark and Ninja brands. SharkNinja, Inc. was incorporated in 2017 and is headquartered in Needham, Massachusetts.