Kingfisher (OTCMKTS:KGFHY) versus Build-A-Bear Workshop (NYSE:BBW) Critical Survey

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

Analyst Recommendations

This is a summary of current ratings and target prices for Build-A-Bear Workshop and Kingfisher, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Build-A-Bear Workshop	0	1	5	0	2.83
Kingfisher	3	2	1	0	1.67

Build-A-Bear Workshop presently has a consensus target price of $64.75, indicating a potential upside of 12.17%. Given Build-A-Bear Workshop’s stronger consensus rating and higher probable upside, research analysts clearly believe Build-A-Bear Workshop is more favorable than Kingfisher.

Insider & Institutional Ownership

79.3% of Build-A-Bear Workshop shares are held by institutional investors. Comparatively, 0.0% of Kingfisher shares are held by institutional investors. 5.8% of Build-A-Bear Workshop shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Build-A-Bear Workshop has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Kingfisher has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Earnings & Valuation

This table compares Build-A-Bear Workshop and Kingfisher”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Build-A-Bear Workshop	$496.40 million	1.51	$51.78 million	$4.35	13.27
Kingfisher	$16.34 billion	0.44	$235.86 million	N/A	N/A

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Build-A-Bear Workshop	10.93%	38.43%	18.36%
Kingfisher	N/A	N/A	N/A

Dividends

Build-A-Bear Workshop pays an annual dividend of $0.88 per share and has a dividend yield of 1.5%. Kingfisher pays an annual dividend of $0.18 per share and has a dividend yield of 2.2%. Build-A-Bear Workshop pays out 20.2% of its earnings in the form of a dividend. Build-A-Bear Workshop has raised its dividend for 1 consecutive years.

Summary

Build-A-Bear Workshop beats Kingfisher on 11 of the 15 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 Kingfisher

Kingfisher plc, together with its subsidiaries, supplies home improvement products and services primarily in the United Kingdom, Ireland, France, and internationally. It also operates retail stores under the B&Q, Castorama, Brico Dépôt, Screwfix, TradePoint, and Koçtas brands. The company sells its products through stores and e-commerce channels. Kingfisher plc was incorporated in 1982 and is headquartered in London, the United Kingdom.