GameStop Corp. (GME) vs Ulta Beauty Inc. (ULTA)

GameStop Corp. and Ulta Beauty Inc. are both Specialty Retail companies. Ulta Beauty Inc. is the larger, with a market value of $23.5B against $12.6B — 1.9× the size. GameStop Corp. trades at the lower P/E: 11.7× against 19.8×. Ulta Beauty Inc. grew revenue faster over the last twelve months: 11.2% against −7.71%. GameStop Corp. has the higher net margin (25.2% vs 9.34%) and the lower return on invested capital (5.72% vs 36.4%). Across the 22 metrics below, Ulta Beauty Inc. leads on 13 and GameStop Corp. on 9.

Valuation

Metric GME ULTA Specialty Retail median
P/E 11.70 19.78 17.14
P/S 2.96 1.81 0.48
P/B 1.71 8.86 1.71
Price to free cash flow 55.31 20.37 13.04
EV/EBITDA 19.49 13.01 8.92
EV/Sales 2.71 1.94 0.64
Earnings yield 8.55% 5.06% 3.85%
Free cash flow yield 1.81% 4.91% 3.02%

Profitability

Metric GME ULTA Specialty Retail median
Gross margin 37.89% 39.32% 37.89%
Operating margin 13.52% 12.46% 3.66%
Net margin 25.16% 9.34% 1.42%
Free cash flow margin 19.38% 8.87% 1.44%
Return on equity 15.79% 46.12% 2.58%
Return on assets 8.32% 17.80% 0.25%
Return on invested capital 5.72% 36.42% 0.00%

Growth

Metric GME ULTA Specialty Retail median
Revenue growth (TTM) (7.71%) 11.16% 3.35%
EPS growth (last fiscal year) 133.33% 1.18% —
Revenue growth, 5-year CAGR (6.54%) 15.04% 3.70%
Net income growth, 5-year CAGR 0.00% 45.67% 0.00%

Health

Metric GME ULTA Specialty Retail median
Debt to equity 0.68 0.13 0.27
Current ratio 8.72 1.35 1.35
Net debt to EBITDA (19.66) (0.24) 0.24

Dividend

Metric GME ULTA Specialty Retail median
Dividend yield — — 1.73%
Payout ratio 0.00 0.00 0.00

Size

Metric GME ULTA Specialty Retail median
Market cap 12.63b 23.46b 348.57m

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