WallStSmart

Bath & Body Works Inc. (BBWI)vsWilliams-Sonoma Inc (WSM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Williams-Sonoma Inc generates 9% more annual revenue ($7.88B vs $7.25B). WSM leads profitability with a 13.8% profit margin vs 10.0%. BBWI appears more attractively valued with a PEG of 0.78. BBWI earns a higher WallStSmart Score of 59/100 (C).

BBWI

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 6.0Value: 8.0Quality: 6.0
Piotroski: 3/9Altman Z: 1.90

WSM

Buy

52

out of 100

Grade: C-

Growth: 3.3Profit: 8.5Value: 4.3Quality: 6.0
Piotroski: 2/9Altman Z: 3.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BBWIUndervalued (+11.6%)

Margin of Safety

+11.6%

Fair Value

$25.35

Current Price

$21.06

$4.29 discount

UndervaluedFair: $25.35Overvalued

Intrinsic value data unavailable for WSM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BBWI4 strengths · Avg: 9.5/10
P/E RatioValuation
5.7x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
83.7%10/10

Earnings expanding 83.7% YoY

Debt/EquityHealth
-4.1610/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.788/10

Growing faster than its price suggests

WSM2 strengths · Avg: 10.0/10
Return on EquityProfitability
58.2%10/10

Every $100 of equity generates 58 in profit

Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

Areas to Watch

BBWI4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.904/10

Grey zone — moderate risk

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-3.2%2/10

Revenue declined 3.2%

WSM4 concerns · Avg: 4.0/10
P/E RatioValuation
25.6x4/10

Moderate valuation

Price/BookValuation
15.7x4/10

Trading at 15.7x book value

Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

EPS GrowthGrowth
4.3%4/10

4.3% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : BBWI

The strongest argument for BBWI centers on P/E Ratio, EPS Growth, Debt/Equity. PEG of 0.78 suggests the stock is reasonably priced for its growth.

Bull Case : WSM

The strongest argument for WSM centers on Return on Equity, Altman Z-Score.

Bear Case : BBWI

The primary concerns for BBWI are Altman Z-Score, Return on Equity, Piotroski F-Score.

Bear Case : WSM

The primary concerns for WSM are P/E Ratio, Price/Book, Revenue Growth.

Key Dynamics to Monitor

WSM carries more volatility with a beta of 1.49 — expect wider price swings.

WSM is growing revenue faster at 4.4% — sustainability is the question.

BBWI generates stronger free cash flow (195M), providing more financial flexibility.

Monitor SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BBWI scores higher overall (59/100 vs 52/100). Both earn "Buy" and "Buy" 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) is a leading specialty retailer distinguished by its extensive range of premium personal care and home fragrance products. With a strong omnichannel strategy that seamlessly merges its expansive retail footprint with a vibrant e-commerce platform, the company prioritizes customer accessibility and engagement. As a subsidiary of L Brands, Inc., BBWI benefits from operational synergies while fostering innovation in product offerings to align with evolving consumer preferences. The company is dedicated to sustainability and community stewardship, positioning itself for long-term growth and competitive resilience in the dynamic beauty and personal care market.

Williams-Sonoma Inc

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Williams-Sonoma, Inc. is an omnichannel specialty retailer of various home products. The company is headquartered in San Francisco, California.

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