Analyzing Bath & Body Works (NYSE:BBWI) & Victoria’s Secret (NYSE:VSCO)

Bath & Body Works (NYSE:BBWI) and Victoria’s Secret (NYSE:VSCO) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Earnings & Valuation

This table compares Bath & Body Works and Victoria’s Secret’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bath & Body Works $11.85 billion 1.44 $844.00 million $3.46 18.69
Victoria’s Secret N/A N/A N/A N/A N/A

Bath & Body Works has higher revenue and earnings than Victoria’s Secret.

Profitability

This table compares Bath & Body Works and Victoria’s Secret’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bath & Body Works 14.62% -177.66% 16.05%
Victoria’s Secret N/A N/A N/A

Analyst Recommendations

This is a summary of current ratings and price targets for Bath & Body Works and Victoria’s Secret, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bath & Body Works 0 1 10 0 2.91
Victoria’s Secret 0 3 5 0 2.63

Bath & Body Works presently has a consensus target price of $79.40, indicating a potential upside of 22.80%. Victoria’s Secret has a consensus target price of $88.88, indicating a potential upside of 77.79%. Given Victoria’s Secret’s higher probable upside, analysts plainly believe Victoria’s Secret is more favorable than Bath & Body Works.

Insider and Institutional Ownership

77.5% of Bath & Body Works shares are owned by institutional investors. 16.3% of Bath & Body Works shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Bath & Body Works beats Victoria’s Secret on 7 of the 9 factors compared between the two stocks.

About Bath & Body Works

Bath & Body Works, Inc. is a specialty retailers and home to America’s Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. The company was founded by Leslie Herbert Wexner in 1963 and is headquartered in Columbus, OH.

About Victoria’s Secret

Victoria’s Secret & Co. is an intimate specialty retailer offering assortment of modern, fashion-inspired collections including signature bras, panties, lingerie, casual sleepwear and athleisure, as well as prestige fragrances and body care. Victoria’s Secret & Co. is based in COLUMBUS, Ohio.

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