Critical Comparison: Bath & Body Works (NYSE:BBWI) & ATRenew (NYSE:RERE)

Bath & Body Works (NYSE:BBWI) and ATRenew (NYSE:RERE) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Risk & Volatility

Bath & Body Works has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, ATRenew has a beta of 0.04, meaning that its stock price is 96% less volatile than the S&P 500.

Valuation & Earnings

This table compares Bath & Body Works and ATRenew”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bath & Body Works	$7.31 billion	0.88	$878.00 million	$3.64	8.26
ATRenew	$16.33 billion	0.03	-$22.01 million	($0.01)	-222.00

Bath & Body Works has higher earnings, but lower revenue than ATRenew. ATRenew 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.

Profitability

This table compares Bath & Body Works and ATRenew’s 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%
ATRenew	-0.53%	6.87%	4.85%

Institutional and Insider Ownership

95.1% of Bath & Body Works shares are held by institutional investors. Comparatively, 19.3% of ATRenew shares are held by institutional investors. 0.3% of Bath & Body Works shares are held by insiders. Comparatively, 10.7% of ATRenew shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bath & Body Works and ATRenew, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bath & Body Works	0	4	14	0	2.78
ATRenew	0	0	0	0	0.00

Bath & Body Works presently has a consensus target price of $44.06, indicating a potential upside of 46.58%. Given Bath & Body Works’ stronger consensus rating and higher probable upside, research analysts plainly believe Bath & Body Works is more favorable than ATRenew.

Summary

Bath & Body Works beats ATRenew 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 ATRenew

ATRenew Inc., through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. The company was formerly known as AiHuiShou International Co. Ltd. and changed its name to ATRenew Inc. November 2021. The company was incorporated in 2011 and is headquartered in Shanghai, the People's Republic of China.