Critical Review: Maison Luxe (OTCMKTS:MASN) versus Build-A-Bear Workshop (NYSE:BBW)

Build-A-Bear Workshop (NYSE:BBW) and Maison Luxe (OTCMKTS:MASN) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and target prices for Build-A-Bear Workshop and Maison Luxe, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Build-A-Bear Workshop	0	1	5	0	2.83
Maison Luxe	0	0	0	0	0.00

Build-A-Bear Workshop presently has a consensus price target of $64.75, indicating a potential upside of 21.03%. Given Build-A-Bear Workshop’s stronger consensus rating and higher probable upside, equities analysts plainly believe Build-A-Bear Workshop is more favorable than Maison Luxe.

Risk & Volatility

Build-A-Bear Workshop has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Maison Luxe has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Institutional & Insider Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Build-A-Bear Workshop	10.93%	38.62%	18.67%
Maison Luxe	-6.04%	-9.59%	-20.96%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Build-A-Bear Workshop	$496.40 million	1.42	$51.78 million	$4.35	12.30
Maison Luxe	$4.80 million	0.06	$100,000.00	N/A	N/A

Build-A-Bear Workshop has higher revenue and earnings than Maison Luxe.

Summary

Build-A-Bear Workshop beats Maison Luxe on 11 of the 12 factors compared between the two stocks.

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.

About Maison Luxe

Maison Luxe, Inc. operates as a luxury goods retailer. It focuses on fine time pieces and jewelry segments on a wholesale and business-to-consumer basis. The company was formerly known as Clikia Corp. and changed its name to Maison Luxe, Inc. in April 2021. The company was incorporated in 2002 and is based in Fort Lee, New Jersey.