Ulta Beauty (NASDAQ:ULTA) vs. Seven and I (OTCMKTS:SVNDY) Head-To-Head Analysis

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

Institutional and Insider Ownership

90.4% of Ulta Beauty shares are owned by institutional investors. Comparatively, 0.0% of Seven and I shares are owned by institutional investors. 0.4% of Ulta Beauty shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ulta Beauty	10.31%	48.78%	19.55%
Seven and I	2.08%	6.54%	2.37%

Risk & Volatility

Ulta Beauty has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Seven and I has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Ulta Beauty and Seven and I, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ulta Beauty	1	12	13	1	2.52
Seven and I	0	1	0	0	2.00

Ulta Beauty presently has a consensus price target of $550.38, indicating a potential upside of 6.98%. Given Ulta Beauty’s stronger consensus rating and higher possible upside, equities analysts plainly believe Ulta Beauty is more favorable than Seven and I.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ulta Beauty	$11.30 billion	2.04	$1.20 billion	$26.08	19.73
Seven and I	$78.57 billion	0.43	$1.14 billion	$0.63	20.69

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

Summary

Ulta Beauty beats Seven and I on 13 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 Seven and I

Seven & i Holdings Co., Ltd. operates convenience stores, superstores, department stores, supermarkets, and specialty stores. It operates through six segments: Domestic Convenience Store operations, Overseas Convenience Store Operations, Superstore Operations, Department and Specialty Store Operations, Financial Services, and Others. The company engages in the operation of convenience stores comprising directly managed corporate stores and franchised stores; retail business that provides daily life necessities, such as food and other daily necessities and dollar merchandise and services; banking, leasing, and credit card business; and real estate business. Seven & i Holdings Co., Ltd. was incorporated in 2005 and is headquartered in Tokyo, Japan.