Sally Beauty Sits at Attractive Valuation

Americans are obsessed with looking their best. The best-known play related to that obsession is Ulta Beauty (ULTA) , a great-performing company that trades at about 44x trailing earnings. That's too rich a valuation for me to be interested.

Sally Beauty Holdings (SBH) is a lesser-known player in the same basic space, with a far more reasonable price tag. Like ULTA, Sally Beauty is located in strip centers, where access and close-up parking are easy and rents are lower than in shopping malls. Unlike ULTA, SBH focuses primarily on serving the professional side of the beauty industry rather than the mass consumer segment. Sally was founded in 1964, acquired by Alberto-Culver in 1969 and spun off as a separate, publicly traded entity on Nov. 16, 2006....409 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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