At Home Group (HOME) and Bed Bath & Beyond (BBBY) Critical Comparison
At Home Group (NYSE: HOME) and Bed Bath & Beyond (NASDAQ:BBBY) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.
Insider and Institutional Ownership
24.7% of At Home Group shares are held by institutional investors. Comparatively, 91.9% of Bed Bath & Beyond shares are held by institutional investors. 7.3% of At Home Group shares are held by insiders. Comparatively, 5.0% of Bed Bath & Beyond shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares At Home Group and Bed Bath & Beyond’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|At Home Group||$765.64 million||2.29||$27.06 million||$0.60||48.28|
|Bed Bath & Beyond||$12.22 billion||0.28||$685.10 million||$3.89||5.98|
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.
This is a summary of current recommendations for At Home Group and Bed Bath & Beyond, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|At Home Group||0||2||5||0||2.71|
|Bed Bath & Beyond||7||13||1||0||1.71|
At Home Group presently has a consensus price target of $27.50, indicating a potential downside of 5.07%. Bed Bath & Beyond has a consensus price target of $27.80, indicating a potential upside of 19.52%. Given Bed Bath & Beyond’s higher probable upside, analysts clearly believe Bed Bath & Beyond is more favorable than At Home Group.
Volatility & Risk
At Home Group has a beta of 3.84, meaning that its share price is 284% more volatile than the S&P 500. Comparatively, Bed Bath & Beyond has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.
Bed Bath & Beyond pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. At Home Group does not pay a dividend. Bed Bath & Beyond pays out 15.4% of its earnings in the form of a dividend.
This table compares At Home Group and Bed Bath & Beyond’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|At Home Group||4.18%||7.53%||3.21%|
|Bed Bath & Beyond||4.64%||21.74%||8.41%|
Bed Bath & Beyond beats At Home Group on 9 of the 16 factors compared between the two stocks.
About At Home Group
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.
About Bed Bath & Beyond
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.
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