WallStSmart

Bath & Body Works Inc. (BBWI)vsBest Buy Co. Inc (BBY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Best Buy Co. Inc generates 485% more annual revenue ($42.20B vs $7.21B). BBWI leads profitability with a 10.8% profit margin vs 3.0%. BBWI appears more attractively valued with a PEG of 0.78. BBY earns a higher WallStSmart Score of 60/100 (C+).

BBWI

Buy

57

out of 100

Grade: C

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

BBY

Buy

60

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 4.7Quality: 6.0
Piotroski: 5/9Altman Z: 3.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BBWIUndervalued (+10.5%)

Margin of Safety

+10.5%

Fair Value

$25.04

Current Price

$17.40

$7.64 discount

UndervaluedFair: $25.04Overvalued
BBYSignificantly Overvalued (-60.1%)

Margin of Safety

-60.1%

Fair Value

$41.89

Current Price

$92.85

$50.96 premium

UndervaluedFair: $41.89Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BBWI4 strengths · Avg: 9.5/10
P/E RatioValuation
5.0x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
93.3%10/10

Earnings expanding 93.3% YoY

Debt/EquityHealth
-4.5010/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.788/10

Growing faster than its price suggests

BBY4 strengths · Avg: 9.5/10
Return on EquityProfitability
40.0%10/10

Every $100 of equity generates 40 in profit

EPS GrowthGrowth
70.1%10/10

Earnings expanding 70.1% YoY

Altman Z-ScoreHealth
3.6410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
14.9x8/10

Attractively priced relative to earnings

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
-2.3%2/10

Revenue declined 2.3%

BBY4 concerns · Avg: 3.5/10
PEG RatioValuation
1.724/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.6%4/10

3.6% revenue growth

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.9%3/10

Operating margin of 3.9%

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 : BBY

The strongest argument for BBY centers on Return on Equity, EPS Growth, Altman Z-Score.

Bear Case : BBWI

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

Bear Case : BBY

The primary concerns for BBY are PEG Ratio, Revenue Growth, Profit Margin. Thin 3.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

BBWI profiles as a declining stock while BBY is a value play — different risk/reward profiles.

BBWI carries more volatility with a beta of 1.37 — expect wider price swings.

BBY is growing revenue faster at 3.6% — sustainability is the question.

BBY generates stronger free cash flow (737M), providing more financial flexibility.

Bottom Line

BBY scores higher overall (60/100 vs 57/100). 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.

Best Buy Co. Inc

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota.

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