Head-To-Head Comparison: Coastal Contacts (COA) versus Sally Beauty (SBH)

Coastal Contacts (NASDAQ: COA) and Sally Beauty (NYSE:SBH) are both cyclical consumer goods & services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Profitability

This table compares Coastal Contacts and Sally Beauty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coastal Contacts N/A N/A N/A
Sally Beauty 5.46% -74.84% 11.78%

Analyst Ratings

This is a summary of current ratings and target prices for Coastal Contacts and Sally Beauty, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coastal Contacts 0 0 0 0 N/A
Sally Beauty 1 11 2 0 2.07

Sally Beauty has a consensus price target of $18.20, indicating a potential upside of 8.46%. Given Sally Beauty’s higher probable upside, analysts clearly believe Sally Beauty is more favorable than Coastal Contacts.

Earnings and Valuation

This table compares Coastal Contacts and Sally Beauty’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Coastal Contacts N/A N/A N/A ($0.48) -23.52
Sally Beauty $3.94 billion 0.54 $215.07 million $1.55 10.83

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

Summary

Sally Beauty beats Coastal Contacts on 7 of the 8 factors compared between the two stocks.

About Coastal Contacts

Coastal Contacts Inc. is an online retailer of eyewear serving markets in North America, Europe and Asia Pacific. The Company operates in two primary product segments: contact lenses and glasses. The Company has approximately nine stores in Canada and Sweden. It sells contact lenses manufactured by multinational companies, such as Vistakon (a division of Johnson and Johnson Vision Care Inc.), Alcon, Inc., Bausch & Lomb Inc. and Coopervision Inc. Its products are offered for sale by telephone, e9 mail, through its Websites, which include www.ClearlyContacts.ca, www.ClearlyContacts.com.au, www.ClearlyContacts.co.nz, www.LensWay.se, www.LensWay.fi, www.LensWay.nl, www.LensWay.no, www.LensWay.co.uk, and www.ContactSan.com or at one of its nine physical retail locations. In April 2014, the Company announced that Essilor International (Compagnie Generale d’Optique), S.A. (Essilor) has indirectly acquired the interest of Coastal.com.

About Sally Beauty

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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