Analyzing Build-A-Bear Workshop (BBW) & Its Competitors

Build-A-Bear Workshop (NYSE: BBW) is one of 2 publicly-traded companies in the “Hobby, toy, & game shops” industry, but how does it weigh in compared to its peers? We will compare Build-A-Bear Workshop to similar companies based on the strength of its institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Analyst Ratings

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This is a summary of current ratings and price targets for Build-A-Bear Workshop and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Build-A-Bear Workshop 0 1 1 0 2.50
Build-A-Bear Workshop Competitors 16 72 89 1 2.42

Build-A-Bear Workshop currently has a consensus price target of $12.75, indicating a potential upside of 43.26%. As a group, “Hobby, toy, & game shops” companies have a potential upside of 23.27%. Given Build-A-Bear Workshop’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Build-A-Bear Workshop is more favorable than its peers.

Institutional and Insider Ownership

75.8% of Build-A-Bear Workshop shares are owned by institutional investors. Comparatively, 75.8% of shares of all “Hobby, toy, & game shops” companies are owned by institutional investors. 17.5% of Build-A-Bear Workshop shares are owned by company insiders. Comparatively, 17.5% of shares of all “Hobby, toy, & game shops” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Build-A-Bear Workshop and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Build-A-Bear Workshop $357.87 million $7.91 million 16.79
Build-A-Bear Workshop Competitors $2.86 billion $199.20 million 12.90

Build-A-Bear Workshop’s peers have higher revenue and earnings than Build-A-Bear Workshop. Build-A-Bear Workshop is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Build-A-Bear Workshop has a beta of -0.35, suggesting that its share price is 135% less volatile than the S&P 500. Comparatively, Build-A-Bear Workshop’s peers have a beta of 0.45, suggesting that their average share price is 56% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Build-A-Bear Workshop 2.21% 7.91% 4.38%
Build-A-Bear Workshop Competitors 4.75% -8.08% 11.53%

Summary

Build-A-Bear Workshop peers beat Build-A-Bear Workshop on 6 of the 10 factors compared.

Build-A-Bear Workshop Company Profile

Build-A-Bear Workshop, Inc. operates as a specialty retailer of plush animals and related products. The company operates through three segments: Direct-to-Consumer, International Franchising, and Commercial. Its merchandise comprises a range of styles of stuffed animals; clothing, shoes, and accessories for the stuffed animals; and other toy and novelty items. The company operates its stores under the Build-A-Bear Workshop brand name; and sells its products through its e-commerce sites. As of December 30, 2017, it operated 361 owned stores, including 301 stores in North America; 59 stores in Europe; and 1 store in China, as well as 102 franchised stores internationally. The company has strategic relationships with Disney, DreamWorks Animation, and Hasbro. Build-A-Bear Workshop, Inc. was founded in 1997 and is headquartered in St. Louis, Missouri.

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