Sally Beauty (NYSE: SBH) and Jumei International (NYSE:JMEI) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.
This table compares Sally Beauty and Jumei International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Sally Beauty has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500. Comparatively, Jumei International has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.
Earnings & Valuation
This table compares Sally Beauty and Jumei International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sally Beauty||$3.94 billion||0.48||$215.07 million||$1.80||8.57|
|Jumei International||$894.03 million||0.46||-$5.68 million||N/A||N/A|
Sally Beauty has higher revenue and earnings than Jumei International.
Institutional & Insider Ownership
17.4% of Jumei International shares are owned by institutional investors. 1.5% of Sally Beauty shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of current recommendations for Sally Beauty and Jumei International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sally Beauty currently has a consensus price target of $16.78, indicating a potential upside of 8.81%. Given Sally Beauty’s higher possible upside, research analysts plainly believe Sally Beauty is more favorable than Jumei International.
Sally Beauty beats Jumei International on 8 of the 11 factors compared between the two stocks.
About Sally Beauty
Sally Beauty Holdings, Inc., together with its subsidiaries, 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, skin and nail care, beauty sundries, and styling tools for retail customers and salon professionals. This segment also provides products under third-party brands, such as OPI, China Glaze, Wella, Clairol, Conair, and Hot Shot Tools, as well as exclusive-label merchandise. As of September 30, 2017, it operated 3,763 company-operated retail stores with 2,883 stores in the United States, including Puerto Rico; and 880 company-operated stores located in Canada, Mexico, the United Kingdom, Ireland, Belgium, France, Germany, the Netherlands, Spain, Chile, and Peru under the Sally Beauty banner, as well as 19 franchised stores in the United Kingdom, Belgium, and certain other European countries. The Beauty Systems Group segment offers professional beauty products, including hair color and care, skin and nail care, beauty sundries, and styling tools directly to salons and salon professionals through its sales force, as well as through company-operated and franchised stores. This segment also sells products under third-party brands, such as Paul Mitchell, Wella, Schwarzkopf, Kenra, Goldwell, Joico, and Aquage. This segment had 1,200 company-operated stores with 1,099 located in the United States, including Puerto Rico; and 101 retail stores located in Canada under the CosmoProf banner in the United States and Canada, as well as 168 franchised stores under the Armstrong McCall name in the United States, Canada, and Mexico. The company also distributes its products through full-service/exclusive distribution, open-line distribution, and direct and mega-salon stores. Sally Beauty Holdings, Inc. was founded in 1964 and is headquartered in Denton, Texas.
About Jumei International
Jumei International Holding Limited operates as an online retailer of beauty products in the People's Republic of China. The company offers beauty products, such as cosmetics, skin care, cosmetic applicators, fragrance, and body care products; and beauty products for men, and baby and children. It also provides apparel and other lifestyle products, including women's wear, footwear, lingerie, handbags and luggage, men's wear, sportswear and sporting goods, accessories, home goods, and other lifestyle products, as well as baby, children, and maternity products; and snacks and health supplements. The company sells its products through Jumei.com and Jumeiglobal.com Websites, mobile platform, and physical stores. Jumei International Holding Limited was founded in 2009 and is headquartered in Beijing, the People's Republic of China.
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