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TSCO vs ULTA

TSCO
Tractor Supply Company
BEARISH
Price
$44.81
Market Cap
$23.59B
Sector
Consumer Cyclical
AI Confidence
85%
ULTA
Ulta Beauty, Inc.
NEUTRAL
Price
$570.16
Market Cap
$25.29B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
TSCO
21.75
ULTA
22.32
Forward P/E
TSCO
18.69
ULTA
18.07
P/B Ratio
TSCO
9.15
ULTA
8.98
P/S Ratio
TSCO
1.52
ULTA
2.04
EV/EBITDA
TSCO
14.96
ULTA
14.52

Profitability

Gross Margin
TSCO
36.42%
ULTA
43.05%
Operating Margin
TSCO
7.64%
ULTA
12.23%
Profit Margin
TSCO
7.06%
ULTA
9.31%
ROE
TSCO
45.18%
ULTA
43.59%
ROA
TSCO
8.84%
ULTA
14.74%

Growth

Revenue Growth
TSCO
3.3%
ULTA
11.8%
Earnings Growth
TSCO
-2.2%
ULTA
-5.4%

Financial Health

Debt/Equity
TSCO
2.3
ULTA
0.78
Current Ratio
TSCO
1.34
ULTA
1.41
Quick Ratio
TSCO
0.09
ULTA
0.35

Dividends

Dividend Yield
TSCO
2.14%
ULTA
--
Payout Ratio
TSCO
44.66%
ULTA
0.0%

AI Verdict

TSCO BEARISH

TSCO exhibits a stable deterministic health profile with a Piotroski F-Score of 6/9, yet it is severely overvalued relative to its Graham Number ($15.07) and Intrinsic Value ($14.42). While the company maintains an exceptional ROE of 45.18%, this is offset by negative earnings growth (-2.20% YoY) and a dangerously low Quick Ratio of 0.09, indicating heavy reliance on inventory for liquidity. The combination of a 0/100 technical trend, aggressive insider selling ($11.96M), and a price trading at a massive premium to defensive fair value suggests significant downside risk.

Strengths
Exceptional Return on Equity (ROE) of 45.18%
Stable Piotroski F-Score (6/9) indicating consistent financial health
Strong gross margins (36.42%) reflecting pricing power in rural niche
Risks
Severe overvaluation relative to Graham and Intrinsic value models
Negative earnings growth (-2.20% YoY and -3.80% Q/Q)
Critical liquidity risk evidenced by a Quick Ratio of 0.09
ULTA NEUTRAL

Ulta Beauty presents a dichotomy between operational excellence and valuation extremes. While the Piotroski F-Score of 4/9 indicates stable financial health, the stock is trading at a massive premium compared to its Graham Number ($190.99) and Intrinsic Value ($178.78). Despite strong revenue growth of 11.8%, the company is experiencing earnings contraction (-5.4% YoY), suggesting margin compression. The stellar ROE of 43.59% supports a premium, but the bearish technical trend and insider sentiment suggest a lack of immediate conviction at current price levels.

Strengths
Exceptional Return on Equity (ROE) of 43.59%
Strong revenue growth (11.8% YoY) indicating continued market demand
Dominant market position as the largest specialty beauty retailer in the U.S.
Risks
Severe overvaluation relative to deterministic fair value models
Negative earnings growth (-5.4% YoY) despite rising revenues
Low Quick Ratio (0.35) indicating high reliance on inventory liquidity

Compare Another Pair

TSCO vs ULTA: Head-to-Head Comparison

This page compares Tractor Supply Company (TSCO) and Ulta Beauty, Inc. (ULTA) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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