Ulta Beauty vs Dollar General

Ulta Beauty and Dollar General are compared to illuminate how their business models, financial performance, and market context differ. This page explains how each company operates, where revenue comes from, and the environments in which they compete, in neutral, accessible language. Educational content, not financial advice.

Ulta Beauty and Dollar General are compared to illuminate how their business models, financial performance, and market context differ. This page explains how each company operates, where revenue comes...

Comparison Snapshot

Key Financial Metrics

ULTA

Metric

DG

$29.53B

Market Cap

$31.59B

-4.17%

Potential Profit

-10.91%

Buy

Analyst Rating

Buy

Why It's Moving

Ulta Beauty Hits All-Time High as Analysts Pile On with Sky-High Price Targets.

Piper Sandler hiked its price target to $775 from $615, citing solid holiday results and overweight rating on the stock's growth potential.
Oppenheimer lifted target to $675 post-Q3 beat, with UBS at $690 and Morgan Stanley at $640, all pointing to conservative guidance leaving room for upside.
Q3 net sales jumped 12.9% to $2.9B, comp sales up 6.3% on higher tickets and traffic, boosting operating income margin resilience.

Sentiment:

🐃Bullish

Dollar General ramps up savings blitz and delivery push to lure budget shoppers amid strong Q3 momentum.

Launched '7 Days of Savings' event with limited-time daily deals and free myDG Delivery on one order through February 28, boosting convenience for essential buys.
Q3 net sales hit $10.6B, up 4.6% with same-store sales +2.5% and operating profit jumping 31.5% to $425.9M, signaling resilient demand in discount retail.
Raised FY2025 guidance to 4.7-4.9% sales growth and $6.30-$6.50 EPS, while planning ~450 new U.S. stores in FY2026 to fuel expansion.

Sentiment:

🐃Bullish

Ulta Beauty Hits All-Time High as Analysts Pile On with Sky-High Price Targets.

Piper Sandler hiked its price target to $775 from $615, citing solid holiday results and overweight rating on the stock's growth potential.
Oppenheimer lifted target to $675 post-Q3 beat, with UBS at $690 and Morgan Stanley at $640, all pointing to conservative guidance leaving room for upside.
Q3 net sales jumped 12.9% to $2.9B, comp sales up 6.3% on higher tickets and traffic, boosting operating income margin resilience.

Sentiment:

🐃Bullish

Dollar General ramps up savings blitz and delivery push to lure budget shoppers amid strong Q3 momentum.

Launched '7 Days of Savings' event with limited-time daily deals and free myDG Delivery on one order through February 28, boosting convenience for essential buys.
Q3 net sales hit $10.6B, up 4.6% with same-store sales +2.5% and operating profit jumping 31.5% to $425.9M, signaling resilient demand in discount retail.
Raised FY2025 guidance to 4.7-4.9% sales growth and $6.30-$6.50 EPS, while planning ~450 new U.S. stores in FY2026 to fuel expansion.

Sentiment:

🐃Bullish

Investment Analysis

Ulta Beauty

ULTA

Pros

Ulta Beauty has demonstrated strong revenue growth of 9.3% year-over-year, indicating solid demand in the beauty retail sector.
The company has a high return on equity of 48.78%, reflecting efficient management and profitability.
Recent quarterly earnings of $5.78 per share significantly exceeded analyst expectations, supporting robust financial health.

Considerations

Analyst price targets show considerable uncertainty, with some estimates forecasting a large downside of nearly 45% in the next 12 months.
The price-to-earnings ratio of around 20.65 suggests potential overvaluation compared to earnings.
Corporate insiders hold only 0.17% of shares, which may indicate limited insider confidence in the stock’s future performance.

Dollar General

DG

Pros

Dollar General operates a broad discount retail network, making it resilient to economic downturns and appealing to value-conscious consumers.
The company benefits from strong cash flow generation and a solid balance sheet with manageable debt levels.
Its focus on expanding private label products and store footprint supports ongoing organic growth.

Considerations

Dollar General faces risks from inflationary pressures that could squeeze margins and reduce discretionary consumer spending.
Competitive pressure from both large retailers and e-commerce platforms may limit pricing power and market share gains.
Regulatory headwinds related to labor costs and minimum wage increases could raise operating expenses.

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