Comparing Bath & Body Works (NYSE:BBWI) and NovelStem International (OTCMKTS:NSTM)

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

Risk and Volatility

Bath & Body Works has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500. Comparatively, NovelStem International has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Profitability

This table compares Bath & Body Works and NovelStem International’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%
NovelStem International	-25,141.66%	N/A	-167.76%

Analyst Ratings

This is a summary of current ratings and price targets for Bath & Body Works and NovelStem International, as provided by MarketBeat.

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

Bath & Body Works presently has a consensus target price of $41.88, indicating a potential upside of 13.85%. Given Bath & Body Works’ stronger consensus rating and higher possible upside, analysts plainly believe Bath & Body Works is more favorable than NovelStem International.

Valuation and Earnings

This table compares Bath & Body Works and NovelStem International”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	$7.43 billion	1.07	$878.00 million	$4.10	8.97
NovelStem International	$10,000.00	N/A	-$4.19 million	($0.07)	-0.16

Bath & Body Works has higher revenue and earnings than NovelStem International. NovelStem International 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, 13.6% of NovelStem International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Bath & Body Works beats NovelStem International on 11 of the 13 factors compared between the two stocks.

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.

About NovelStem International

NovelStem International Corp., a development stage biotechnology holding company, focuses on development and commercialization of stem cell-based diagnostic technology for cancer treatments and to reduce resistance to chemotherapy. The company was formerly known as Hollywood Media Corp. and changed its name to NovelStem International Corp. in September 2018. NovelStem International Corp. was incorporated in 1993 and is headquartered in Boca Raton, Florida.