Best Buy Co. Inc (BBY)vsFive Below Inc (FIVE)
BBY
Best Buy Co. Inc
$57.29
-0.61%
CONSUMER CYCLICAL · Cap: $12.58B
FIVE
Five Below Inc
$226.72
-1.90%
CONSUMER CYCLICAL · Cap: $12.73B
Smart Verdict
WallStSmart Research — data-driven comparison
Best Buy Co. Inc generates 775% more annual revenue ($41.69B vs $4.76B). FIVE leads profitability with a 7.5% profit margin vs 2.6%. BBY appears more attractively valued with a PEG of 1.15. FIVE earns a higher WallStSmart Score of 65/100 (B-).
BBY
Buy64
out of 100
Grade: C+
FIVE
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+17.6%
Fair Value
$81.36
Current Price
$57.29
$24.07 discount
Margin of Safety
+23.8%
Fair Value
$270.45
Current Price
$226.72
$43.73 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 37 in profit
Earnings expanding 372.5% YoY
Safe zone — low bankruptcy risk
Generating 1.1B in free cash flow
Revenue surging 24.3% year-over-year
Earnings expanding 26.3% YoY
Areas to Watch
2.6% margin — thin
Revenue declined 1.0%
Premium valuation, high expectations priced in
7.5% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : BBY
The strongest argument for BBY centers on P/E Ratio, Return on Equity, EPS Growth. PEG of 1.15 suggests the stock is reasonably priced for its growth.
Bull Case : FIVE
The strongest argument for FIVE centers on Revenue Growth, EPS Growth. Revenue growth of 24.3% demonstrates continued momentum. PEG of 1.18 suggests the stock is reasonably priced for its growth.
Bear Case : BBY
The primary concerns for BBY are Profit Margin, Revenue Growth. Thin 2.6% margins leave little buffer for downturns.
Bear Case : FIVE
The primary concerns for FIVE are P/E Ratio, Profit Margin.
Key Dynamics to Monitor
BBY profiles as a value stock while FIVE is a growth play — different risk/reward profiles.
BBY carries more volatility with a beta of 1.37 — expect wider price swings.
FIVE is growing revenue faster at 24.3% — sustainability is the question.
BBY generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
FIVE scores higher overall (65/100 vs 64/100) and 24.3% revenue growth. BBY offers better value entry with a 17.6% margin of safety. Both earn "Strong 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.
Best Buy Co. Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota.
Five Below Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Five Below, Inc. is a specialty value retailer in the United States. The company is headquartered in Philadelphia, Pennsylvania.
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