Bath & Body Works (NYSE:BBWI – Get Free Report) and Petco Health and Wellness (NASDAQ:WOOF – Get Free Report) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.
Risk & Volatility
Bath & Body Works has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, Petco Health and Wellness has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500.
Profitability
This table compares Bath & Body Works and Petco Health and Wellness’ 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% |
| Petco Health and Wellness | -1.77% | -5.40% | -1.18% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bath & Body Works | 0 | 5 | 13 | 0 | 2.72 |
| Petco Health and Wellness | 0 | 5 | 4 | 0 | 2.44 |
Bath & Body Works presently has a consensus price target of $45.06, indicating a potential upside of 66.20%. Petco Health and Wellness has a consensus price target of $4.11, indicating a potential upside of 43.67%. Given Bath & Body Works’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Bath & Body Works is more favorable than Petco Health and Wellness.
Earnings and Valuation
This table compares Bath & Body Works and Petco Health and Wellness”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bath & Body Works | $7.31 billion | 0.79 | $878.00 million | $3.64 | 7.45 |
| Petco Health and Wellness | $6.12 billion | 0.15 | -$1.28 billion | ($0.37) | -7.73 |
Bath & Body Works has higher revenue and earnings than Petco Health and Wellness. Petco Health and Wellness 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.
Institutional and Insider Ownership
95.1% of Bath & Body Works shares are owned by institutional investors. 0.3% of Bath & Body Works shares are owned by insiders. Comparatively, 2.4% of Petco Health and Wellness shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Bath & Body Works beats Petco Health and Wellness on 11 of the 14 factors compared between the two stocks.
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.
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.
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