Sally Beauty Holdings (NYSE: SBH) is one of 21 public companies in the “Other Specialty Retailers” industry, but how does it compare to its competitors? We will compare Sally Beauty Holdings to similar companies based off the strength of its earnings, valuation, analyst recommendations, institutional ownership, dividends, profitability and risk.

Volatility and Risk

Sally Beauty Holdings has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Sally Beauty Holdings’ competitors have a beta of 1.23, suggesting that their average stock price is 23% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Sally Beauty Holdings and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sally Beauty Holdings 1 9 2 0 2.08
Sally Beauty Holdings Competitors 382 1016 1082 48 2.31

Sally Beauty Holdings presently has a consensus target price of $24.78, suggesting a potential upside of 26.74%. All “Other Specialty Retailers” companies have a potential upside of 3.52%. Given Sally Beauty Holdings’ higher possible upside, research analysts plainly believe Sally Beauty Holdings is more favorable than its competitors.

Institutional & Insider Ownership

62.2% of shares of all “Other Specialty Retailers” companies are owned by institutional investors. 1.0% of Sally Beauty Holdings shares are owned by company insiders. Comparatively, 22.7% of shares of all “Other Specialty Retailers” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Sally Beauty Holdings and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sally Beauty Holdings 6.67% N/A 12.74%
Sally Beauty Holdings Competitors 22.76% -11.84% 5.99%

Earnings & Valuation

This table compares Sally Beauty Holdings and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sally Beauty Holdings $3.94 billion $603.02 million 11.92
Sally Beauty Holdings Competitors $3.37 billion $365.11 million 5.98

Sally Beauty Holdings has higher revenue and earnings than its competitors. Sally Beauty Holdings is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently the more expensive than other companies in its industry.

Summary

Sally Beauty Holdings competitors beat Sally Beauty Holdings on 7 of the 13 factors compared.

About Sally Beauty Holdings

Sally Beauty Holdings, Inc. is an international specialty retailer and distributor of professional beauty supplies with operations primarily in North America, South America and Europe. The Company operates through two business segments: Sally Beauty Supply and Beauty Systems Group (BSG). Sally Beauty Supply is a domestic and international chain of cash and carry retail stores, which offers professional beauty supplies to both salon professionals and retail customers primarily in North America, Puerto Rico, and parts of Europe and South America. BSG, including its franchise-based business Armstrong McCall, is a full service beauty supply distributor, which offers professional brands of beauty products directly to salons and salon professionals through its own sales force and professional-only stores (including franchise stores) in partially exclusive geographical territories in North America and parts of Europe.

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