Bed Bath & Beyond (NASDAQ: BBBY) and At Home Group (NYSE:HOME) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Bed Bath & Beyond pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. At Home Group does not pay a dividend. Bed Bath & Beyond pays out 15.4% of its earnings in the form of a dividend.
Institutional & Insider Ownership
91.6% of Bed Bath & Beyond shares are held by institutional investors. Comparatively, 24.8% of At Home Group shares are held by institutional investors. 5.0% of Bed Bath & Beyond shares are held by insiders. Comparatively, 7.1% of At Home Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current ratings for Bed Bath & Beyond and At Home Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bed Bath & Beyond||7||13||1||0||1.71|
|At Home Group||0||2||5||0||2.71|
Bed Bath & Beyond currently has a consensus target price of $27.80, indicating a potential upside of 23.17%. At Home Group has a consensus target price of $27.50, indicating a potential downside of 6.34%. Given Bed Bath & Beyond’s higher probable upside, equities research analysts clearly believe Bed Bath & Beyond is more favorable than At Home Group.
This table compares Bed Bath & Beyond and At Home Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bed Bath & Beyond||4.64%||21.74%||8.41%|
|At Home Group||4.18%||7.53%||3.21%|
Valuation & Earnings
This table compares Bed Bath & Beyond and At Home Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bed Bath & Beyond||$12.22 billion||0.27||$685.10 million||$3.89||5.80|
|At Home Group||$765.64 million||2.32||$27.06 million||$0.60||48.93|
Bed Bath & Beyond has higher revenue and earnings than At Home Group. Bed Bath & Beyond is trading at a lower price-to-earnings ratio than At Home Group, indicating that it is currently the more affordable of the two stocks.
Bed Bath & Beyond beats At Home Group on 9 of the 15 factors compared between the two stocks.
Bed Bath & Beyond Company Profile
Bed Bath & Beyond Inc. is a retailer, which operates under the names Bed Bath & Beyond (BBB), Christmas Tree Shops, Christmas Tree Shops andThat! or andThat! (collectively, CTS), Harmon or Harmon Face Values (collectively, Harmon), buybuy BABY (Baby) and World Market, Cost Plus World Market or Cost Plus (collectively, Cost Plus World Market). The Company operates in two segments: North American Retail and Institutional Sales. The Company sells a range of domestics merchandise and home furnishings. Domestics merchandise includes categories, such as bed linens and related items, bath items and kitchen textiles. Home furnishings include categories, such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables and juvenile products. The Company operates approximately 1,530 stores plus its various Websites, other interactive platforms and distribution facilities.
At Home Group Company Profile
At Home Group, Inc. is a home decor superstore. The Company is focused on providing a range of assortment of products for any room, in any style, for any budget. As of July 30, 2016, the Company offered over 50,000 stock keeping units (SKUs) throughout its stores. As of July 30, 2016, the Company’s store base is consisted of 115 format stores across 29 states and 65 markets, averaging approximately 120,000 square feet per store.
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