Critical Analysis: Bath & Body Works (BBWI) vs. Its Competitors

Bath & Body Works (NYSE:BBWI) is one of 27 public companies in the “Retail stores, not elsewhere classified” industry, but how does it weigh in compared to its competitors? We will compare Bath & Body Works to related companies based on the strength of its valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Bath & Body Works	$7.43 billion	$878.00 million	9.43
Bath & Body Works Competitors	$48.42 billion	$153.49 million	-5.39

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.

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 0.89, meaning that their average share price is 11% less volatile than the S&P 500.

Institutional & Insider 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

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%

Analyst Recommendations

This is a summary of current recommendations and price targets for Bath & Body Works and its competitors, as reported 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	95	875	1511	62	2.61

Bath & Body Works presently has a consensus price target of $42.50, suggesting a potential upside of 9.88%. As a group, “Retail stores, not elsewhere classified” companies have a potential upside of 9.27%. Given Bath & Body Works’ higher possible upside, equities analysts plainly believe Bath & Body Works is more favorable than its competitors.

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.

Summary

Bath & Body Works beats its competitors on 9 of the 15 factors compared.

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.