Star Group (NYSE:SGU) and Bath & Body Works (NYSE:BBWI) Head to Head Comparison

Star Group (NYSE:SGU) and Bath & Body Works (NYSE:BBWI) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Star Group and Bath & Body Works, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Star Group	0	0	0	0	0.00
Bath & Body Works	1	6	9	0	2.50

Bath & Body Works has a consensus target price of $42.50, suggesting a potential upside of 9.99%. Given Bath & Body Works’ stronger consensus rating and higher possible upside, analysts clearly believe Bath & Body Works is more favorable than Star Group.

Profitability

This table compares Star Group and Bath & Body Works’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Star Group	1.99%	12.01%	3.82%
Bath & Body Works	12.43%	-44.03%	14.45%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Star Group	$1.77 billion	0.23	$35.22 million	$0.57	20.35
Bath & Body Works	$7.43 billion	1.13	$878.00 million	$4.10	9.42

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

Dividends

Star Group pays an annual dividend of $0.69 per share and has a dividend yield of 5.9%. Bath & Body Works pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. Star Group pays out 121.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bath & Body Works pays out 19.5% of its earnings in the form of a dividend. Star Group has raised its dividend for 12 consecutive years. Star Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

40.4% of Star Group shares are held by institutional investors. Comparatively, 95.1% of Bath & Body Works shares are held by institutional investors. 20.4% of Star Group shares are held by insiders. Comparatively, 0.3% of Bath & Body Works shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Star Group has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Bath & Body Works has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500.

Summary

Bath & Body Works beats Star Group on 12 of the 17 factors compared between the two stocks.

About Star Group

Star Group, L.P., together with its subsidiaries, provides home heating oil and propane products and services to residential and commercial customers in the United States. It offers gasoline and diesel fuel; and installs, maintain, and repairs heating and air conditioning equipment. As of September 30, 2023, the company served approximately 402,200 full service residential and commercial home heating oil and propane customers and 52,400 customers on a delivery only basis. It also sells gasoline and diesel fuel to approximately 26,600 customers. The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. Star Group, L.P. was incorporated in 1995 and is based in Stamford, Connecticut.

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.