Petco Health and Wellness (NASDAQ:WOOF – Get Free Report) and Bath & Body Works (NYSE:BBWI – Get Free Report) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.
Insider and Institutional Ownership
95.1% of Bath & Body Works shares are owned by institutional investors. 2.4% of Petco Health and Wellness shares are owned by insiders. Comparatively, 0.3% of Bath & Body Works shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Petco Health and Wellness and Bath & Body Works”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Petco Health and Wellness | $6.12 billion | 0.15 | -$1.28 billion | ($0.37) | -8.00 |
Bath & Body Works | $7.31 billion | 0.90 | $878.00 million | $3.64 | 8.41 |
Profitability
This table compares Petco Health and Wellness and Bath & Body Works’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Petco Health and Wellness | -1.77% | -5.40% | -1.18% |
Bath & Body Works | 12.43% | -44.03% | 14.45% |
Analyst Recommendations
This is a breakdown of current ratings for Petco Health and Wellness and Bath & Body Works, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Petco Health and Wellness | 1 | 5 | 4 | 0 | 2.30 |
Bath & Body Works | 0 | 5 | 13 | 0 | 2.72 |
Petco Health and Wellness presently has a consensus target price of $3.85, indicating a potential upside of 30.00%. Bath & Body Works has a consensus target price of $45.06, indicating a potential upside of 47.28%. Given Bath & Body Works’ stronger consensus rating and higher possible upside, analysts plainly believe Bath & Body Works is more favorable than Petco Health and Wellness.
Risk and Volatility
Petco Health and Wellness has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, Bath & Body Works has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500.
Summary
Bath & Body Works beats Petco Health and Wellness on 11 of the 14 factors compared between the two stocks.
About Petco Health and Wellness
Petco Health and Wellness Company, Inc., operates as a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites. The company offers its products under the WholeHearted, Reddy, and Well & Good brands. Petco Health and Wellness Company, Inc. was founded in 1965 and is headquartered in San Diego, California.
About Bath & Body Works
Bath & Body Works, Inc. is a specialty retailers and home to America’s Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. The company was founded by Leslie Herbert Wexner in 1963 and is headquartered in Columbus, OH.
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