Critical Contrast: Bath & Body Works (NYSE:BBWI) versus 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 better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

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 insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

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 for Bath & Body Works and Victoria’s Secret, as reported by MarketBeat.com.

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 possible upside, analysts plainly believe Victoria’s Secret is more favorable than Bath & Body Works.

Valuation & Earnings

This table compares Bath & Body Works and Victoria’s Secret’s revenue, earnings per share (EPS) 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.

Summary

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

Bath & Body Works Company Profile

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.

Victoria’s Secret Company Profile

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.

Receive News & Ratings for Bath & Body Works Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bath & Body Works and related companies with MarketBeat.com's FREE daily email newsletter.