Bath & Body Works (NYSE:BBWI – Get Free Report) is one of 27 public companies in the “Retail stores, not elsewhere classified” industry, but how does it contrast to its peers? We will compare Bath & Body Works to similar businesses based on the strength of its institutional ownership, profitability, analyst recommendations, valuation, dividends, earnings and risk.
Profitability
This table compares Bath & Body Works and its peers’ 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% |
Bath & Body Works Competitors | -21.34% | -60.07% | 0.73% |
Dividends
Bath & Body Works pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. Bath & Body Works pays out 19.5% of its earnings in the form of a dividend. As a group, “Retail stores, not elsewhere classified” companies pay a dividend yield of 2.5% and pay out 28.5% of their earnings in the form of a dividend.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Bath & Body Works | 1 | 6 | 9 | 0 | 2.50 |
Bath & Body Works Competitors | 95 | 875 | 1511 | 62 | 2.61 |
Bath & Body Works presently has a consensus target price of $42.50, indicating a potential upside of 13.58%. As a group, “Retail stores, not elsewhere classified” companies have a potential upside of 8.67%. Given Bath & Body Works’ higher possible upside, equities analysts plainly believe Bath & Body Works is more favorable than its peers.
Valuation & Earnings
This table compares Bath & Body Works and its peers top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Net Income | Price/Earnings Ratio | |
Bath & Body Works | $7.43 billion | $878.00 million | 9.13 |
Bath & Body Works Competitors | $48.98 billion | $153.49 million | -5.57 |
Bath & Body Works’ peers have higher revenue, but lower earnings than Bath & Body Works. Bath & Body Works is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Volatility & Risk
Bath & Body Works has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, Bath & Body Works’ peers have a beta of 0.81, meaning that their average share price is 19% less volatile than the S&P 500.
Institutional & Insider Ownership
95.1% of Bath & Body Works shares are owned by institutional investors. Comparatively, 33.7% of shares of all “Retail stores, not elsewhere classified” companies are owned by institutional investors. 0.3% of Bath & Body Works shares are owned by insiders. Comparatively, 15.7% of shares of all “Retail stores, not elsewhere classified” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Bath & Body Works beats its peers on 9 of the 15 factors compared.
Bath & Body Works Company Profile
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.
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