Costco vs. Ulta Beauty: Which Is the Better $500 Stock?

They have very different market capitalizations, but investors have assigned about the same per-share value to Costco Wholesale (NASDAQ: COST) and Ulta Beauty (NASDAQ: ULTA). Paying roughly $500 will get you a single share of either retailer at the moment.

Yes, there are significant differences in their selling models. Costco generates most of its earnings from the fees it charges members for access to its wholesale clubs. Ulta Beauty earns a higher premium for sales of its more focused lineup of makeup, skin care products, and spa services.

But which is the better stock at today's prices? Let's take a look.

Continue reading


Source Fool.com