At Home Group (NASDAQ: HOME) and Bed Bath & Beyond (NASDAQ:BBBY) are both cyclical consumer goods & services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Bed Bath & Beyond pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. At Home Group does not pay a dividend. Bed Bath & Beyond pays out 13.9% of its earnings in the form of a dividend.
This table compares At Home Group and Bed Bath & Beyond’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|At Home Group||$805.40 million||1.69||$119.12 million||N/A||N/A|
|Bed Bath & Beyond||$12.22 billion||0.31||$1.36 billion||$4.33||6.30|
Bed Bath & Beyond has higher revenue and earnings than At Home Group.
This is a breakdown of recent ratings and target prices for At Home Group and Bed Bath & Beyond, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|At Home Group||0||3||6||0||2.67|
|Bed Bath & Beyond||8||12||1||0||1.67|
At Home Group presently has a consensus target price of $23.92, indicating a potential upside of 6.15%. Bed Bath & Beyond has a consensus target price of $35.38, indicating a potential upside of 29.72%. Given Bed Bath & Beyond’s higher possible upside, analysts plainly believe Bed Bath & Beyond is more favorable than At Home Group.
Institutional and Insider Ownership
91.5% of Bed Bath & Beyond shares are owned by institutional investors. 5.0% of Bed Bath & Beyond shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares At Home Group and Bed Bath & Beyond’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|At Home Group||4.74%||7.44%||3.26%|
|Bed Bath & Beyond||5.22%||24.38%||9.34%|
Bed Bath & Beyond beats At Home Group on 9 of the 14 factors compared between the two stocks.
About At Home Group
At Home Group, Inc. is a home decor superstore. The Company is focused on providing a range of assortment of products for any room, in any style, for any budget. As of July 30, 2016, the Company offered over 50,000 stock keeping units (SKUs) throughout its stores. As of July 30, 2016, the Company’s store base is consisted of 115 format stores across 29 states and 65 markets, averaging approximately 120,000 square feet per store.
About Bed Bath & Beyond
Bed Bath & Beyond Inc. is a retailer, which operates under the names Bed Bath & Beyond (BBB), Christmas Tree Shops, Christmas Tree Shops andThat! or andThat! (collectively, CTS), Harmon or Harmon Face Values (collectively, Harmon), buybuy BABY (Baby) and World Market, Cost Plus World Market or Cost Plus (collectively, Cost Plus World Market). The Company operates in two segments: North American Retail and Institutional Sales. The Company sells a range of domestics merchandise and home furnishings. Domestics merchandise includes categories, such as bed linens and related items, bath items and kitchen textiles. Home furnishings include categories, such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables and juvenile products. The Company operates approximately 1,530 stores plus its various Websites, other interactive platforms and distribution facilities.
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