Reviewing Ulta Beauty (NASDAQ:ULTA) & Yunji (NASDAQ:YJ)

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

Institutional & Insider Ownership

88.7% of Ulta Beauty shares are owned by institutional investors. 4.2% of Ulta Beauty shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Ulta Beauty and Yunji’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ulta Beauty $6.72 billion 2.96 $658.56 million $10.85 31.38
Yunji $1.89 billion 1.28 -$8.68 million N/A N/A

Ulta Beauty has higher revenue and earnings than Yunji.

Analyst Recommendations

This is a summary of recent ratings and price targets for Ulta Beauty and Yunji, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ulta Beauty 0 5 14 0 2.74
Yunji 0 0 2 0 3.00

Ulta Beauty presently has a consensus price target of $348.06, indicating a potential upside of 2.22%. Yunji has a consensus price target of $14.35, indicating a potential upside of 28.13%. Given Yunji’s stronger consensus rating and higher possible upside, analysts clearly believe Yunji is more favorable than Ulta Beauty.

Profitability

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

Net Margins Return on Equity Return on Assets
Ulta Beauty 9.92% 36.48% 18.82%
Yunji N/A N/A N/A

Summary

Ulta Beauty beats Yunji on 9 of the 11 factors compared between the two stocks.

About Ulta Beauty

Ulta Beauty, Inc. operates as a beauty retailer in the United States. The company's stores offer cosmetics, fragrances, skincare and haircare products, bath and body products, and salon styling tools; salon services, including hair, skin, makeup, and brow services; and others, including nail products and accessories. It also provides private label products, such as the Ulta Beauty Collection branded cosmetics, skincare, and bath products, as well as Ulta Beauty branded products. As of February 2, 2019, the company operated 1,174 retail stores across 50 states. It also distributes its 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.

About Yunji

Yunji Inc. operates a social e-commerce platform in the People's Republic of China. It offers a range of product categories that cater various daily needs of users and their households, including beauty and personal care, household goods, food and fresh produce, computer and electronics, apparel, bags and cases, baby and maternity products, and home appliances. The company was founded in 2015 and is headquartered in Hangzhou, China.

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