IAC (NASDAQ: IAC) and Ulta Beauty (NASDAQ:ULTA) are both large-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Institutional and Insider Ownership
86.9% of IAC shares are held by institutional investors. Comparatively, 92.6% of Ulta Beauty shares are held by institutional investors. 11.3% of IAC shares are held by insiders. Comparatively, 5.2% of Ulta Beauty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares IAC and Ulta Beauty’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|IAC||$3.31 billion||4.04||$304.92 million||$0.77||210.13|
|Ulta Beauty||$5.88 billion||2.42||$555.23 million||$8.16||28.81|
Ulta Beauty has higher revenue and earnings than IAC. Ulta Beauty is trading at a lower price-to-earnings ratio than IAC, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
IAC has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Ulta Beauty has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.
This is a breakdown of recent ratings for IAC and Ulta Beauty, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
IAC presently has a consensus target price of $166.45, indicating a potential upside of 2.87%. Ulta Beauty has a consensus target price of $253.48, indicating a potential upside of 7.84%. Given Ulta Beauty’s higher possible upside, analysts plainly believe Ulta Beauty is more favorable than IAC.
This table compares IAC and Ulta Beauty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ulta Beauty beats IAC on 8 of the 14 factors compared between the two stocks.
IAC Company Profile
IAC/InterActiveCorp, together with its subsidiaries, operates as a media and Internet company in the United States and internationally. It operates through Match Group, ANGI Homeservices, Video, Applications, and Publishing segments. The Match Group segment provides subscription dating products, which enable users to establish a profile and review the profiles of other users in 42 languages. The ANGI Homeservices segment owns and operates the HomeAdvisor digital marketplace, which matches consumers with service professionals for home repair, maintenance, and improvement projects; and Angie's List that connects consumers with service professionals for local services through an online directory of service professionals in approximately 700 service categories, as well as provides consumers with tools, services, and content, including reviews of local service professionals. The Video segment operates a video sharing platform, which provides creators with professional tools to host, manage, review, distribute, and monetize videos online. It also offers creators with professional live streaming capabilities, as well as a live video solution; and creators with production hardware, tools, and services for capturing, broadcasting, and editing live events. The Applications segment develops, markets, and distributes various applications, primarily browser extensions. It also provides software and services that clean, repair, update, secure, and optimize computers, mobile phones, and digital devices; and customized browser-based search applications. The Publishing segment publishes digital content and/or offers search services. Its brands include Dotdash, Dictionary.com, Investopedia, The Daily Beast, Ask.com, and CityGrid. The company was formerly known as InterActiveCorp. IAC/InterActiveCorp was founded in 1986 and is headquartered in New York, New York.
Ulta Beauty Company Profile
Ulta Beauty, Inc. operates as a beauty retailer in the United States. The company's stores provide cosmetics, fragrance, skincare, haircare, bath and body products, and salon styling tools, as well as others, including nail products and accessories. It offers private label products consisting of Ulta Beauty Collection branded cosmetics, skincare, and bath products. As of November 3, 2017, the company operated 1,010 retail stores. Its full-service salon offers hair, skin, and brow services; and provides products through its Website, ulta.com. 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 founded in 1990 and is based in Bolingbrook, Illinois.
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