Financial Comparison: Bath & Body Works (NYSE:BBWI) and Kirkland’s (NASDAQ:KIRK)

Kirkland’s (NASDAQ:KIRK) and Bath & Body Works (NYSE:BBWI) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Earnings and Valuation

This table compares Kirkland’s and Bath & Body Works”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kirkland’s	$458.41 million	0.05	-$27.75 million	($1.60)	-1.04
Bath & Body Works	$7.43 billion	1.10	$878.00 million	$4.10	9.20

Bath & Body Works has higher revenue and earnings than Kirkland’s. Kirkland’s is trading at a lower price-to-earnings ratio than Bath & Body Works, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

15.4% of Kirkland’s shares are owned by institutional investors. Comparatively, 95.1% of Bath & Body Works shares are owned by institutional investors. 5.0% of Kirkland’s shares are owned by company insiders. Comparatively, 0.3% of Bath & Body Works shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Kirkland’s has a beta of 2.46, indicating that its share price is 146% more volatile than the S&P 500. Comparatively, Bath & Body Works has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500.

Profitability

This table compares Kirkland’s and Bath & Body Works’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kirkland’s	-4.56%	N/A	-6.56%
Bath & Body Works	12.43%	-44.03%	14.45%

Analyst Ratings

This is a summary of current recommendations and price targets for Kirkland’s and Bath & Body Works, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kirkland’s	0	1	1	0	2.50
Bath & Body Works	1	6	9	0	2.50

Kirkland’s currently has a consensus target price of $4.50, indicating a potential upside of 171.08%. Bath & Body Works has a consensus target price of $42.50, indicating a potential upside of 12.73%. Given Kirkland’s’ higher probable upside, research analysts clearly believe Kirkland’s is more favorable than Bath & Body Works.

Summary

Bath & Body Works beats Kirkland’s on 9 of the 13 factors compared between the two stocks.

About Kirkland’s

Kirkland’s, Inc. operates as a specialty retailer of home décor and furnishings in the United States. Its stores provide various merchandise, including holiday décor, furniture, textiles, ornamental wall décor, decorative accessories, art, mirrors, home fragrance, lighting, floral, housewares, outdoor, and gifts. The company operates its stores under the Kirkland’s, Kirkland’s Home, Kirkland’s Home Outlet, Kirkland’s Outlet, and Kirkland Collection names. It also operates an e-commerce website, kirklands.com. The company was founded in 1966 and is headquartered in Brentwood, Tennessee.

About Bath & Body Works

Bath & Body Works, Inc. operates a specialty retailer of home fragrance, body care, and soaps and sanitizer products. It sells its products under the Bath & Body Works, White Barn, and other brand names through retail stores and e-commerce sites located in the United States and Canada, as well as through international stores operated by partners under franchise, license, and wholesale arrangements. The company was formerly known as L Brands, Inc. and changed its name to Bath & Body Works, Inc. in August 2021. Bath & Body Works, Inc. was founded in 1963 and is headquartered in Columbus, Ohio.