Tractor Supply (NASDAQ:TSCO) & Build-A-Bear Workshop (NYSE:BBW) Head-To-Head Survey

Tractor Supply (NASDAQ:TSCO) and Build-A-Bear Workshop (NYSE:BBW) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Valuation and Earnings

This table compares Tractor Supply and Build-A-Bear Workshop”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tractor Supply	$14.88 billion	2.11	$1.10 billion	$2.04	29.07
Build-A-Bear Workshop	$496.40 million	1.49	$51.78 million	$4.16	13.42

Tractor Supply has higher revenue and earnings than Build-A-Bear Workshop. Build-A-Bear Workshop is trading at a lower price-to-earnings ratio than Tractor Supply, indicating that it is currently the more affordable of the two stocks.

Dividends

Tractor Supply pays an annual dividend of $0.92 per share and has a dividend yield of 1.6%. Build-A-Bear Workshop pays an annual dividend of $0.88 per share and has a dividend yield of 1.6%. Tractor Supply pays out 45.1% of its earnings in the form of a dividend. Build-A-Bear Workshop pays out 21.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Tractor Supply has increased its dividend for 16 consecutive years and Build-A-Bear Workshop has increased its dividend for 1 consecutive years. Build-A-Bear Workshop is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

98.7% of Tractor Supply shares are owned by institutional investors. Comparatively, 79.3% of Build-A-Bear Workshop shares are owned by institutional investors. 0.7% of Tractor Supply shares are owned by insiders. Comparatively, 5.8% of Build-A-Bear Workshop shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Tractor Supply and Build-A-Bear Workshop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tractor Supply	7.18%	46.83%	10.73%
Build-A-Bear Workshop	10.91%	40.74%	18.98%

Volatility & Risk

Tractor Supply has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Build-A-Bear Workshop has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Tractor Supply and Build-A-Bear Workshop, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tractor Supply	0	8	13	0	2.62
Build-A-Bear Workshop	0	0	3	0	3.00

Tractor Supply currently has a consensus price target of $61.80, suggesting a potential upside of 4.22%. Build-A-Bear Workshop has a consensus price target of $52.6667, suggesting a potential downside of 5.65%. Given Tractor Supply’s higher probable upside, analysts plainly believe Tractor Supply is more favorable than Build-A-Bear Workshop.

Summary

Tractor Supply beats Build-A-Bear Workshop on 10 of the 17 factors compared between the two stocks.

About Tractor Supply

Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers various merchandise, including livestock and equine feed and equipment, poultry, fencing, and sprayers and chemicals; food, treats, and equipment for dogs, cats, and other small animals, as well as dog wellness products; seasonal and recreation products comprising tractors and riders, lawn and garden, bird feeding, power equipment, and other recreational products; truck, tool, and hardware products, such as truck accessories, trailers, generators, lubricants, batteries, and hardware and tools; and clothing, gift, and décor products consist of clothing, footwear, toys, snacks, and decorative merchandise. It provides its products under the 4health, Paws & Claws, American Farmworks, Producer's Pride, Bit & Bridle, Red Shed, Blue Mountain, Redstone, C.E. Schmidt, Retriever, Country Lane, Ridgecut, Countyline, Royal Wing, Country Tuff, Strive, Dumor, Traveller, Farm Table, Treeline, Groundwork, TSC Tractor Supply Co, Huskee, Untamed, and JobSmart brand names. The company operates its retail stores under the Tractor Supply Company, Petsense by Tractor Supply, and Orscheln Farm and Home names; and operates websites under the TractorSupply.com and Petsense.com names. It sells its products to recreational farmers, ranchers, and others. Tractor Supply Company was founded in 1938 and is based in Brentwood, Tennessee.

About Build-A-Bear Workshop

Build-A-Bear Workshop, Inc. operates as a multi-channel retailer of plush animals and related products in the United States, Canada, the United Kingdom, Ireland, and internationally. The company operates through three segments: Direct-to-Consumer, Commercial, and International Franchising. Its merchandise comprises various styles of plush products to be stuffed, pre-stuffed plush products, and sounds and scents that can be added to the stuffed animals, as well as range of clothing, shoes and accessories, and other toy and novelty items, including family sleepwear. The company operates its stores under the Build-A-Bear Workshop brand name; and sells its products through its e-commerce sites and third-party marketplace sites. Build-A-Bear Workshop, Inc. was founded in 1997 and is headquartered in Saint Louis, Missouri.