Critical Analysis: DFI Retail Group (OTCMKTS:DFIHY) and Bath & Body Works (NYSE:BBWI)

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

Profitability

This table compares DFI Retail Group and Bath & Body Works’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DFI Retail Group	N/A	N/A	N/A
Bath & Body Works	11.10%	-47.44%	15.18%

Risk & Volatility

DFI Retail Group has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, Bath & Body Works has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.

Earnings and Valuation

This table compares DFI Retail Group and Bath & Body Works”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DFI Retail Group	$8.87 billion	N/A	-$244.50 million	N/A	N/A
Bath & Body Works	$7.31 billion	0.82	$798.00 million	$3.75	7.51

Bath & Body Works has lower revenue, but higher earnings than DFI Retail Group.

Institutional and Insider Ownership

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

Dividends

DFI Retail Group pays an annual dividend of $0.28 per share and has a dividend yield of 1.6%. Bath & Body Works pays an annual dividend of $0.80 per share and has a dividend yield of 2.8%. Bath & Body Works pays out 21.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for DFI Retail Group and Bath & Body Works, as provided by MarketBeat.com.

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

Bath & Body Works has a consensus price target of $42.19, suggesting a potential upside of 49.87%. Given Bath & Body Works’ stronger consensus rating and higher probable upside, analysts clearly believe Bath & Body Works is more favorable than DFI Retail Group.

Summary

Bath & Body Works beats DFI Retail Group on 10 of the 13 factors compared between the two stocks.

About DFI Retail Group

DFI Retail Group Holdings Limited operates as a retailer in Asia. The company operates through five segments: Food, Convenience, Health and Beauty, Home Furnishings, Restaurants, and Other Retailing. The company primarily operates grocery stores under the Wellcome, Yonghui, CS Fresh, Market Place, Giant, Hero, Cold Storage, Mercato, San Miu, Jasons, and Lucky brands; and convenience stores under the 7-Eleven brand. It also operates health and beauty stores under the Mannings, Guardian, and GNC brands; and home furnishings stores under the IKEA brand, as well as restaurants under the Maxim’s brand. The company was formerly known as Dairy Farm International Holdings Limited and changed its name to DFI Retail Group Holdings Limited in May 2022. The company was incorporated in 1886 and is based in Quarry Bay, Hong Kong. DFI Retail Group Holdings Limited is a subsidiary of Jardine Strategic Limited.

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.