Bath & Body Works Inc. (BBWI)vsThe Home Depot Inc (HD)
BBWI
Bath & Body Works Inc.
$19.20
+4.35%
CONSUMER CYCLICAL · Cap: $3.87B
HD
The Home Depot Inc
$323.05
+2.42%
CONSUMER CYCLICAL · Cap: $322.59B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 2159% more annual revenue ($164.68B vs $7.29B). BBWI leads profitability with a 8.9% profit margin vs 8.6%. BBWI appears more attractively valued with a PEG of 0.84. BBWI earns a higher WallStSmart Score of 51/100 (C-).
BBWI
Buy51
out of 100
Grade: C-
HD
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.8%
Fair Value
$33.33
Current Price
$19.20
$14.13 discount
Margin of Safety
-29.7%
Fair Value
$243.24
Current Price
$323.05
$79.81 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Growing faster than its price suggests
Strong operational efficiency at 22.5%
Mega-cap, among the largest globally
Every $100 of equity generates 146 in profit
Safe zone — low bankruptcy risk
Generating 2.3B in free cash flow
Areas to Watch
Grey zone — moderate risk
ROE of 0.0% — below average capital efficiency
Revenue declined 2.3%
Earnings declined 4.7%
Weak financial health signals
Expensive relative to growth rate
Trading at 25.1x book value
Revenue declined 3.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : BBWI
The strongest argument for BBWI centers on P/E Ratio, PEG Ratio, Operating Margin. PEG of 0.84 suggests the stock is reasonably priced for its growth.
Bull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bear Case : BBWI
The primary concerns for BBWI are Altman Z-Score, Return on Equity, Revenue Growth.
Bear Case : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Key Dynamics to Monitor
BBWI carries more volatility with a beta of 1.39 — expect wider price swings.
BBWI is growing revenue faster at -2.3% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BBWI scores higher overall (51/100 vs 50/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Bath & Body Works Inc.
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Bath & Body Works Inc. (BBWI) stands as a premier specialty retailer renowned for its diverse portfolio of premium personal care products, including body care, skincare, fragrances, and home fragrances. The company leverages a strong omnichannel strategy that combines an extensive physical retail presence with a robust online platform, driving customer loyalty and engagement. Continued innovation and adaptive marketing strategies enable Bath & Body Works to respond effectively to evolving consumer preferences within the dynamic beauty and personal care landscape. As a subsidiary of L Brands, Inc., Bath & Body Works benefits from operational synergies while remaining committed to sustainability and community initiatives, positioning itself for sustained growth and industry leadership.
The Home Depot Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.
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