Sally Beauty (NYSE:SBH – Get Free Report) and Bed Bath & Beyond (NYSE:BBBY – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.
Volatility and Risk
Sally Beauty has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Bed Bath & Beyond has a beta of 2.89, indicating that its stock price is 189% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Sally Beauty and Bed Bath & Beyond, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sally Beauty | 1 | 3 | 3 | 0 | 2.29 |
| Bed Bath & Beyond | 1 | 3 | 1 | 0 | 2.00 |
Valuation and Earnings
This table compares Sally Beauty and Bed Bath & Beyond”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sally Beauty | $3.70 billion | 0.42 | $195.88 million | $1.92 | 8.62 |
| Bed Bath & Beyond | $1.04 billion | 0.33 | -$84.62 million | ($1.14) | -4.09 |
Sally Beauty has higher revenue and earnings than Bed Bath & Beyond. Bed Bath & Beyond is trading at a lower price-to-earnings ratio than Sally Beauty, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
76.3% of Bed Bath & Beyond shares are held by institutional investors. 2.0% of Sally Beauty shares are held by company insiders. Comparatively, 1.8% of Bed Bath & Beyond shares are held by company 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.
Profitability
This table compares Sally Beauty and Bed Bath & Beyond’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sally Beauty | 5.16% | 24.36% | 7.07% |
| Bed Bath & Beyond | -7.13% | -37.60% | -16.78% |
Summary
Sally Beauty beats Bed Bath & Beyond on 11 of the 14 factors compared between the two stocks.
About Sally Beauty
Sally Beauty Holdings, Inc. operates as a specialty retailer and distributor of professional beauty supplies. The company operates through two segments, Sally Beauty Supply and Beauty Systems Group. The Sally Beauty Supply segment offers beauty products, including hair color and care products, skin and nail care products, styling tools, and other beauty products for retail customers, salons, and salon professionals. This segment also provides products under Wella and L'Oreal brands. The Beauty Systems Group segment offers professional beauty products, such as hair color and care products, skin and nail care products, styling tools, and other beauty items directly to salons and salon professionals through its professional-only stores, e-commerce platforms, and sales force, as well as through franchised stores under the Armstrong McCall store name. This segment also sells products under Paul Mitchell and Wella brands. It operates stores and franchised units in the United States, Puerto Rico, Canada, Mexico, Chile, Peru, the United Kingdom, Ireland, Belgium, France, the Netherlands, Spain, and Germany. The company distributes its products through full-service/exclusive distributors and open-line distributors. Sally Beauty Holdings, Inc. was founded in 1964 and is headquartered in Denton, Texas.
About Bed Bath & Beyond
Beyond, Inc. operates as an online retailer of furniture and home furnishings products in the United States and Canada. The company offers furniture, bedding and bath, patio and outdoor gear, area rugs, tabletop and cookware, décor, storage and organization, small appliances, home improvement, and other products under the Bed Bath & Beyond brand. The company provides its products and services through its e-commerce platform accessible through its mobile application, which includes bedbathandbeyond.com, bedbathandbeyond.ca, and overstockgovernment.com. It also offers businesses advertising products or services on its website; Marketplace, a service that allows its partners to sell their products through third party sites; product sales to international customers using third party logistics providers; and Supplier Oasis, a singular integration point that enables partners to manage their products, inventory, and sales channels, as well as access multi-channel fulfillment services through its distribution network. The company was formerly known as Overstock.com, Inc. and changed its name to Beyond, Inc. in November 2023. Beyond, Inc. was founded in 1997 and is headquartered in Midvale, Utah.
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