High Tide (NASDAQ:HITI) vs. Bath & Body Works (NYSE:BBWI) Critical Analysis

Bath & Body Works (NYSE:BBWI) and High Tide (NASDAQ:HITI) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Profitability

This table compares Bath & Body Works and High Tide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bath & Body Works	12.43%	-44.03%	14.45%
High Tide	-6.14%	2.06%	1.25%

Valuation and Earnings

This table compares Bath & Body Works and High Tide”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bath & Body Works	$7.43 billion	1.07	$878.00 million	$4.10	8.97
High Tide	$361.57 million	0.69	-$29.14 million	($0.28)	-11.04

Bath & Body Works has higher revenue and earnings than High Tide. High Tide is trading at a lower price-to-earnings ratio than Bath & Body Works, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Bath & Body Works has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, High Tide has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Insider & Institutional Ownership

95.1% of Bath & Body Works shares are owned by institutional investors. Comparatively, 4.5% of High Tide shares are owned by institutional investors. 0.3% of Bath & Body Works shares are owned by company insiders. Comparatively, 12.4% of High Tide shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Bath & Body Works and High Tide, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bath & Body Works	1	6	10	0	2.53
High Tide	0	0	1	2	3.67

Bath & Body Works presently has a consensus target price of $43.06, indicating a potential upside of 17.08%. High Tide has a consensus target price of $4.50, indicating a potential upside of 45.63%. Given High Tide’s stronger consensus rating and higher probable upside, analysts plainly believe High Tide is more favorable than Bath & Body Works.

Summary

Bath & Body Works beats High Tide on 10 of the 15 factors compared between the two stocks.

About Bath & Body Works

Bath & Body Works, Inc. operates a specialty retailer of home fragrance, body care, and soaps and sanitizer products. It sells its products under the Bath & Body Works, White Barn, and other brand names through retail stores and e-commerce sites located in the United States and Canada, as well as through international stores operated by partners under franchise, license, and wholesale arrangements. The company was formerly known as L Brands, Inc. and changed its name to Bath & Body Works, Inc. in August 2021. Bath & Body Works, Inc. was founded in 1963 and is headquartered in Columbus, Ohio.

About High Tide

High Tide Inc. engages in the cannabis retail business in Canada, the United States, and internationally. The company operates through Retail and Wholesale segments. It operates licensed retail cannabis stores; and provides data analytics services. In addition, the company manufactures and distributes consumption accessories. Further, it sells its products through online sales via e-commerce platform. The company offers its products under the Daily High Club, DankStop, FABCBD, GC, Nuleaf, Smoke Cartel, and Blessed CBD brands. The company was formerly known as High Tide Ventures Inc. and changed its name to High Tide Inc. in October 2018. High Tide Inc. was founded in 2009 and is headquartered in Calgary, Canada.