Financial Survey: Secoo (SECO) vs. Ulta Beauty (ULTA)

Secoo (NASDAQ: SECO) and Ulta Beauty (NASDAQ:ULTA) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Valuation and Earnings

How to Become a New Pot Stock Millionaire

This table compares Secoo and Ulta Beauty’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Secoo $574.90 million 0.26 $20.40 million $0.76 15.39
Ulta Beauty $5.88 billion 2.36 $555.23 million $8.16 28.07

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

Institutional & Insider Ownership

24.2% of Secoo shares are owned by institutional investors. Comparatively, 92.6% of Ulta Beauty shares are owned by institutional investors. 5.2% of Ulta Beauty shares are owned 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Secoo N/A N/A N/A
Ulta Beauty 9.44% 30.40% 18.17%

Analyst Recommendations

This is a summary of current ratings for Secoo and Ulta Beauty, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Secoo 0 0 1 0 3.00
Ulta Beauty 0 8 16 0 2.67

Secoo currently has a consensus target price of $18.00, suggesting a potential upside of 53.85%. Ulta Beauty has a consensus target price of $253.48, suggesting a potential upside of 10.66%. Given Secoo’s stronger consensus rating and higher probable upside, research analysts clearly believe Secoo is more favorable than Ulta Beauty.

Summary

Ulta Beauty beats Secoo on 11 of the 13 factors compared between the two stocks.

Secoo Company Profile

Secoo Holding Limited, through its subsidiaries, operates as an integrated online and offline shopping platform in the People's Republic of China and internationally. The company provides upscale brand products and services, including bags, watches, women's and men's wear, footwear, children's wear, sportswear, cosmetics and skin care products, jewelry, accessories, automobiles, home goods, find food and beverage products, arts, and Chinese original products, as well as lifestyle services through its Website, mobile applications, and offline experience centers. It also offers its Website as a marketplace to third party merchants to facilitate their sales of upscale products and services. Secoo Holding Limited has a strategic partnership agreement with Parkson Retail Group. The company was founded in 2011 and is headquartered in Beijing, China.

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.

Receive News & Ratings for Secoo Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Secoo and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply