Head to Head Analysis: BARK (NYSE:BARK) & Bath & Body Works (NYSE:BBWI)

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

Valuation and Earnings

This table compares BARK and Bath & Body Works”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BARK	$490.18 million	0.82	-$37.01 million	($0.18)	-12.89
Bath & Body Works	$7.43 billion	1.07	$878.00 million	$4.10	8.93

Bath & Body Works has higher revenue and earnings than BARK. BARK 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.

Analyst Recommendations

This is a summary of current ratings and target prices for BARK and Bath & Body Works, as reported by MarketBeat.

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

BARK presently has a consensus target price of $2.20, indicating a potential downside of 5.17%. Bath & Body Works has a consensus target price of $41.88, indicating a potential upside of 14.41%. Given Bath & Body Works’ higher probable upside, analysts clearly believe Bath & Body Works is more favorable than BARK.

Insider and Institutional Ownership

28.8% of BARK shares are held by institutional investors. Comparatively, 95.1% of Bath & Body Works shares are held by institutional investors. 14.8% of BARK shares are held by company insiders. Comparatively, 0.3% of Bath & Body Works shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BARK	-6.20%	-17.69%	-7.84%
Bath & Body Works	12.43%	-44.03%	14.45%

Volatility and Risk

BARK has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500. Comparatively, Bath & Body Works has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.

Summary

Bath & Body Works beats BARK on 10 of the 13 factors compared between the two stocks.

About BARK

BARK Inc., a dog-centric company, provides products, services, and content for dogs. It operates in two segments, Direct to Consumer and Commerce. The company serves dogs through monthly subscription services. It is also involved in the design of playstyle-specific toys, satisfying treats, personal meal plans with supplements, and dog-first experiences designed to foster health and happiness of dogs everywhere. In addition, the company offers monthly themed box of toys and treats under the BarkBox and Super Chewer names; personalized meal plans under the BARK Food name; health and wellness products under the BARK Bright name; and dog beds, bowls, collars, harnesses, and leashes under the BARK Home brand. Further, the company sells BARK Home products through BarkShop.com. Additionally, it offers custom collections through online marketplaces, and brick and mortar retailers. The company was formerly known as The Original BARK Company and changed its name to BARK, Inc. in November 2021. BARK Inc. was incorporated in 2011 and is headquartered in New York, New York.

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.