Contrasting Bed Bath & Beyond (BBBY) & Its Peers

Bed Bath & Beyond (NASDAQ: BBBY) is one of 7 publicly-traded companies in the “Home furniture, furnishings & equipment stores” industry, but how does it contrast to its rivals? We will compare Bed Bath & Beyond to related businesses based on the strength of its earnings, dividends, valuation, institutional ownership, analyst recommendations, risk and profitability.

Volatility & Risk

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Bed Bath & Beyond has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Bed Bath & Beyond’s rivals have a beta of 1.38, indicating that their average share price is 38% more volatile than the S&P 500.

Dividends

Bed Bath & Beyond pays an annual dividend of $0.60 per share and has a dividend yield of 2.9%. Bed Bath & Beyond pays out 13.1% of its earnings in the form of a dividend. As a group, “Home furniture, furnishings & equipment stores” companies pay a dividend yield of 3.2% and pay out 29.5% of their earnings in the form of a dividend.

Profitability

This table compares Bed Bath & Beyond and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bed Bath & Beyond 4.11% 19.07% 7.48%
Bed Bath & Beyond Competitors 3.59% 13.37% 5.59%

Valuation & Earnings

This table compares Bed Bath & Beyond and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Bed Bath & Beyond $12.22 billion $685.10 million 4.58
Bed Bath & Beyond Competitors $3.08 billion $147.27 million 18.06

Bed Bath & Beyond has higher revenue and earnings than its rivals. Bed Bath & Beyond is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

91.3% of Bed Bath & Beyond shares are owned by institutional investors. Comparatively, 58.4% of shares of all “Home furniture, furnishings & equipment stores” companies are owned by institutional investors. 5.0% of Bed Bath & Beyond shares are owned by insiders. Comparatively, 20.0% of shares of all “Home furniture, furnishings & equipment stores” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Bed Bath & Beyond and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bed Bath & Beyond 8 12 1 0 1.67
Bed Bath & Beyond Competitors 167 667 427 20 2.23

Bed Bath & Beyond presently has a consensus price target of $25.39, indicating a potential upside of 20.97%. As a group, “Home furniture, furnishings & equipment stores” companies have a potential downside of 0.70%. Given Bed Bath & Beyond’s higher possible upside, analysts plainly believe Bed Bath & Beyond is more favorable than its rivals.

Summary

Bed Bath & Beyond beats its rivals on 8 of the 15 factors compared.

Bed Bath & Beyond Company Profile

Bed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores. It sells a range of domestics merchandise, including bed linens and related items, bath items, and kitchen textiles; and home furnishings, such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables, and juvenile products. It also provides various textile products, amenities, and other goods to institutional customers in the hospitality, cruise line, healthcare, and other industries. As of December 20, 2017, the company had a total of 1,558 stores, includes 1,020 Bed Bath & Beyond stores in 50 states, the District of Columbia, Puerto Rico, and Canada; 280 stores under the names of World Market, Cost Plus World Market, or Cost Plus; 118 buybuy BABY stores; 83 stores under the Christmas Tree Shops, Christmas Tree Shops andThat! or andThat! names; and 57 stores under the Harmon, Harmon Face Values, or Face Values. It also offers products through various Websites and applications, such as bedbathandbeyond.com, bedbathandbeyond.ca, harmondiscount.com, christmastreeshops.com, buybuybaby.com, buybuybaby.ca, harborlinen.com, t-ygroup.com, and worldmarket.com. In addition, the Company operates Of a Kind, an e-commerce Website that features specially commissioned limited edition items from emerging fashion and home designers; One Kings Lane, an online authority in home décor and design that offers a collection of selected home goods, and designer and vintage items; PersonalizationMall.com, an online retailer of personalized products; Chef Central, an online retailer of kitchenware, cookware, and homeware items catering to cooking and baking enthusiasts; and Decorist, an online interior design platform that provides personalized home design services. Bed Bath & Beyond Inc. was founded in 1971 and is based in Union, New Jersey.

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