NORDSTROM INC (JWN) vs. Ulta Beauty, Inc. (ULTA) Stock Comparison & Valuation | Edwyn

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NORDSTROM INC (JWN) vs. Ulta Beauty, Inc. (ULTA) Stock Comparison & Valuation | Edwyn

Updated 2026-02-01 18:40 UTC

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Nordstrom shows materially weaker profitability and higher leverage versus Ulta, implying it should trade at a meaningful discount to ULTA — ULTA-implied valuation sits at $44.45 (the low end of the $44.45–$233.63 ULTA range).

Actionable Takeaway

If you believe Nordstrom can materially narrow the profitability gap (e.g., raise Operating Margin closer to Ulta's 13.9% from 5.6% and meaningfully reduce Debt/Equity from 2.5x), then consider accumulating toward ULTA-implied valuation; otherwise underweight or avoid because current metrics (Net Margin 2.0%, high Debt/Equity 2.5x, missing market multiples) justify a discount to Ulta.

A ULTA-based P/E multiple implies a Nordstrom price of $44.45, which equals the low end of the provided ULTA-implied range ($44.45–$233.63). The wide range reflects large valuation dispersion in ULTA set and Nordstrom's missing market multiples (P/E, P/S, EV metrics are N/A) which increases valuation uncertainty.

Supporting Metrics

Key Risks

High leverage: Debt/Equity at 2.5x increases refinancing and downside risk relative to Ulta (0.8x).
Weak profitability: Net Margin is only 2.0% versus Ulta's 10.6%, making earnings vulnerable to small revenue/margin shocks.
Valuation uncertainty: Key Nordstrom multiples (P/E, P/S, EV/EBITDA, EV/Revenue) are N/A, increasing uncertainty about market pricing and the appropriateness of ULTA-based extrapolation.