Murphy USA Inc. (MUSA) vs Ulta Beauty Inc. (ULTA)

Murphy USA Inc. and Ulta Beauty Inc. are both Specialty Retail companies. Ulta Beauty Inc. is the larger, with a market value of $23.5B against $9.5B — 2.5× the size. Murphy USA Inc. trades at the lower P/E: 15.4× against 19.8×. Ulta Beauty Inc. grew revenue faster over the last twelve months: 11.2% against 10.3%. Ulta Beauty Inc. has the higher net margin (9.34% vs 2.87%) and the higher return on invested capital (36.4% vs 20.6%). Across the 22 metrics below, Ulta Beauty Inc. leads on 14 and Murphy USA Inc. on 8.

Valuation

Metric MUSA ULTA Specialty Retail median
P/E 15.44 19.78 17.14
P/S 0.44 1.81 0.48
P/B 12.05 8.86 1.71
Price to free cash flow 17.38 20.37 13.04
EV/EBITDA 9.47 13.01 8.92
EV/Sales 0.53 1.94 0.64
Earnings yield 6.48% 5.06% 3.85%
Free cash flow yield 5.76% 4.91% 3.02%

Profitability

Metric MUSA ULTA Specialty Retail median
Gross margin 12.22% 39.32% 37.89%
Operating margin 4.29% 12.46% 3.66%
Net margin 2.87% 9.34% 1.42%
Free cash flow margin 2.53% 8.87% 1.44%
Return on equity 86.39% 46.12% 2.58%
Return on assets 12.72% 17.80% 0.25%
Return on invested capital 20.62% 36.42% 0.00%

Growth

Metric MUSA ULTA Specialty Retail median
Revenue growth (TTM) 10.27% 11.16% 3.35%
EPS growth (last fiscal year) (0.04%) 1.18% —
Revenue growth, 5-year CAGR 11.47% 15.04% 3.70%
Net income growth, 5-year CAGR 4.04% 45.67% 0.00%

Health

Metric MUSA ULTA Specialty Retail median
Debt to equity 2.79 0.13 0.27
Current ratio 0.92 1.35 1.35
Net debt to EBITDA 2.16 (0.24) 0.24

Dividend

Metric MUSA ULTA Specialty Retail median
Dividend yield 0.41% — 1.73%
Payout ratio 0.06 0.00 0.00

Size

Metric MUSA ULTA Specialty Retail median
Market cap 9.47b 23.46b 348.57m

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