Sally Beauty (NYSE:SBH – Get Free Report) and PetMed Express (NASDAQ:PETS – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
Profitability
This table compares Sally Beauty and PetMed Express’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sally Beauty | 5.16% | 24.36% | 7.07% |
| PetMed Express | -17.34% | -91.69% | -35.15% |
Volatility & Risk
Sally Beauty has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, PetMed Express has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.
Insider & Institutional Ownership
Analyst Recommendations
This is a summary of current ratings and target prices for Sally Beauty and PetMed Express, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sally Beauty | 1 | 3 | 3 | 0 | 2.29 |
| PetMed Express | 1 | 1 | 0 | 0 | 1.50 |
Sally Beauty presently has a consensus price target of $17.40, suggesting a potential upside of 4.19%. Given Sally Beauty’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Sally Beauty is more favorable than PetMed Express.
Earnings and Valuation
This table compares Sally Beauty and PetMed Express”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sally Beauty | $3.73 billion | 0.42 | $195.88 million | $1.92 | 8.70 |
| PetMed Express | $179.02 million | 0.21 | -$57.29 million | ($1.38) | -1.25 |
Sally Beauty has higher revenue and earnings than PetMed Express. PetMed Express 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 PetMed Express on 13 of the 14 factors compared between the two stocks.
About Sally Beauty
Sally Beauty Holdings, Inc. operates as a specialty retailer and distributor of professional beauty supplies. The company operates through two segments, Sally Beauty Supply and Beauty Systems Group. The Sally Beauty Supply segment offers beauty products, including hair color and care products, skin and nail care products, styling tools, and other beauty products for retail customers, salons, and salon professionals. This segment also provides products under Wella and L'Oreal brands. The Beauty Systems Group segment offers professional beauty products, such as hair color and care products, skin and nail care products, styling tools, and other beauty items directly to salons and salon professionals through its professional-only stores, e-commerce platforms, and sales force, as well as through franchised stores under the Armstrong McCall store name. This segment also sells products under Paul Mitchell and Wella brands. It operates stores and franchised units in the United States, Puerto Rico, Canada, Mexico, Chile, Peru, the United Kingdom, Ireland, Belgium, France, the Netherlands, Spain, and Germany. The company distributes its products through full-service/exclusive distributors and open-line distributors. Sally Beauty Holdings, Inc. was founded in 1964 and is headquartered in Denton, Texas.
About PetMed Express
PetMed Express, Inc., together with its subsidiaries, operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, health products, and other supplies for dogs, cats, and horses. It offers non-prescription medications and supplies, such as flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and household pet supplies; and prescription medications, including heartworm preventatives, flea and tick preventatives, arthritis, dermatitis, thyroid, diabetes, pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes. The company also sells food, beds, crates, stairs, and other pet supplies. It sells its products through its Internet website; mobile app; customer support center; and direct mail/print, which includes brochures and postcards. The company was incorporated in 1996 and is headquartered in Delray Beach, Florida.
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