Head-To-Head Analysis: Bath & Body Works (BBWI) vs. The Competition

Bath & Body Works (NYSE:BBWIGet Free Report) is one of 27 publicly-traded companies in the “Retail stores, not elsewhere classified” industry, but how does it contrast to its competitors? We will compare Bath & Body Works to similar businesses based on the strength of its analyst recommendations, valuation, risk, earnings, dividends, institutional ownership and profitability.

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 2.6% and pay out 28.5% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations for Bath & Body Works and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bath & Body Works 1 6 9 0 2.50
Bath & Body Works Competitors 96 875 1512 62 2.61

Bath & Body Works presently has a consensus target price of $42.50, indicating a potential upside of 9.00%. As a group, “Retail stores, not elsewhere classified” companies have a potential upside of 9.10%. Given Bath & Body Works’ competitors stronger consensus rating and higher possible upside, analysts clearly believe Bath & Body Works has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Bath & Body Works and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Bath & Body Works $7.43 billion $878.00 million 9.51
Bath & Body Works Competitors $49.00 billion $153.49 million -4.98

Bath & Body Works’ competitors have higher revenue, but lower earnings than Bath & Body Works. Bath & Body Works is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

95.1% of Bath & Body Works shares are held by institutional investors. Comparatively, 33.7% of shares of all “Retail stores, not elsewhere classified” companies are held by institutional investors. 0.3% of Bath & Body Works shares are held by insiders. Comparatively, 15.7% of shares of all “Retail stores, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Bath & Body Works and its competitors’ 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%

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’ competitors have a beta of 0.81, meaning that their average share price is 19% less volatile than the S&P 500.

Summary

Bath & Body Works beats its competitors on 8 of the 15 factors compared.

Bath & Body Works Company Profile

(Get Free Report)

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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