e.l.f. Beauty beat earnings but saw a 20% stock crash as net income fell 84.8% to $3M. Executives sold over $24M in stock before the report. Ulta Beauty delivered its 15th earnings beat in 16 quarters, with $5.14 per share versus $4.60 expected. Operating margins held steady at 10.8%.

e.l.f. trades at 58x earnings with 2.24% operating margins, while Ulta trades at 23x earnings with 10.8% operating margins and 48% return on equity. e.l.f. grew revenue 14.2% YoY to $343.9M in Q2, but net income dropped 84.8% to $3M, with operating margins at 2.24%.

Ulta posted $2.9B in revenue, beating estimates of $2.7B, with 6.3% comparable sales growth. Net income remained flat at $230.9M, with a 9.93% profit margin. Gross margin expanded to 40.4%. CEO Steelman said results “exceeded our expectations.” Operating margin stayed at 10.8%.

e.l.f. traded at 58x earnings with 2.24% operating margins, while Ulta traded at 23x earnings with 10.8% operating margins and 48% return on equity. e.l.f.’s technical indicators are weak, with a 42.55 RSI. Ulta offers stability with proven execution.

e.l.f. faces higher risk with insider selling before the crash, collapsing profitability, and stretched valuation. Ulta’s predictable profitability and reasonable valuation contrast with e.l.f.’s multiple. e.l.f. at $81 versus a $121 analyst target presents a 49% upside if the business model works.

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Read more at Yahoo Finance: Ulta Delivers 15th Beat in 16 Quarters as e.l.f. Profitability Crumbles