Kirkland’s (NASDAQ:KIRK) and Bath & Body Works (NYSE:BBWI) Critical Comparison

Bath & Body Works (NYSE:BBWI) and Kirkland’s (NASDAQ:KIRK) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

95.1% of Bath & Body Works shares are held by institutional investors. Comparatively, 15.4% of Kirkland’s shares are held by institutional investors. 0.3% of Bath & Body Works shares are held by company insiders. Comparatively, 5.0% of Kirkland’s shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Bath & Body Works and Kirkland’s, 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
Kirkland’s	0	1	1	0	2.50

Bath & Body Works currently has a consensus price target of $42.50, suggesting a potential upside of 9.62%. Kirkland’s has a consensus price target of $4.50, suggesting a potential upside of 177.78%. Given Kirkland’s’ higher possible upside, analysts plainly believe Kirkland’s is more favorable than Bath & Body Works.

Valuation & Earnings

This table compares Bath & Body Works and Kirkland’s”s 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	1.13	$878.00 million	$4.10	9.46
Kirkland’s	$458.41 million	0.05	-$27.75 million	($1.60)	-1.01

Bath & Body Works has higher revenue and earnings than Kirkland’s. Kirkland’s 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 Kirkland’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%
Kirkland’s	-4.56%	N/A	-6.56%

Risk and Volatility

Bath & Body Works has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, Kirkland’s has a beta of 2.42, meaning that its share price is 142% more volatile than the S&P 500.

Summary

Bath & Body Works beats Kirkland’s on 9 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 Kirkland’s

Kirkland’s, Inc. operates as a specialty retailer of home décor and furnishings in the United States. Its stores provide various merchandise, including holiday décor, furniture, textiles, ornamental wall décor, decorative accessories, art, mirrors, home fragrance, lighting, floral, housewares, outdoor, and gifts. The company operates its stores under the Kirkland’s, Kirkland’s Home, Kirkland’s Home Outlet, Kirkland’s Outlet, and Kirkland Collection names. It also operates an e-commerce website, kirklands.com. The company was founded in 1966 and is headquartered in Brentwood, Tennessee.