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 $27.8B against $9.3B — 3.0× the size. Murphy USA Inc. trades at the lower P/E: 14.3× against 23.5×. Murphy USA Inc. grew revenue faster over the last twelve months: 20.2% against 11.2%. Ulta Beauty Inc. has the higher net margin (9.34% vs 2.85%) and the higher return on invested capital (36.4% vs 22.0%). Across the 22 metrics below, Ulta Beauty Inc. leads on 13 and Murphy USA Inc. on 9.

Valuation

Metric MUSA ULTA Specialty Retail median
P/E 14.31 23.51 19.32
P/S 0.40 2.15 0.59
P/B 11.83 10.53 2.19
Price to free cash flow 14.03 24.22 12.81
EV/EBITDA 8.95 14.87 7.94
EV/Sales 0.49 2.22 0.75
Earnings yield 6.99% 4.25% 4.27%
Free cash flow yield 7.13% 4.13% 3.23%

Profitability

Metric MUSA ULTA Specialty Retail median
Gross margin 11.66% 39.32% 36.02%
Operating margin 4.21% 12.46% 4.14%
Net margin 2.85% 9.34% 2.85%
Free cash flow margin 2.88% 8.87% 2.61%
Return on equity 99.01% 46.12% 4.17%
Return on assets 13.46% 17.80% 1.43%
Return on invested capital 21.99% 36.42% 1.82%

Growth

Metric MUSA ULTA Specialty Retail median
Revenue growth (TTM) 20.20% 11.16% 3.53%
EPS growth (last fiscal year) (0.04%) 1.18% 26.01%
Revenue growth, 5-year CAGR 11.47% 15.04% 3.84%
Net income growth, 5-year CAGR 4.04% 45.67% 0.00%

Health

Metric MUSA ULTA Specialty Retail median
Debt to equity 2.76 0.13 0.26
Current ratio 0.87 1.35 1.38
Net debt to EBITDA 2.16 (0.24) 0.35

Dividend

Metric MUSA ULTA Specialty Retail median
Dividend yield 0.64% — 1.27%
Payout ratio 0.09 — 0.26

Size

Metric MUSA ULTA Specialty Retail median
Market cap 9.31b 27.78b 569.27m

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