WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Best Buy Co. Inc generates 478% more annual revenue ($41.86B vs $7.25B). BBWI leads profitability with a 10.0% profit margin vs 2.7%. BBWI appears more attractively valued with a PEG of 0.78. BBY earns a higher WallStSmart Score of 60/100 (C+).

BBWI

Buy

59

out of 100

Grade: C

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

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 (+11.6%)

Margin of Safety

+11.6%

Fair Value

$25.35

Current Price

$21.06

$4.29 discount

UndervaluedFair: $25.35Overvalued
BBYSignificantly Overvalued (-64.7%)

Margin of Safety

-64.7%

Fair Value

$40.72

Current Price

$86.35

$45.63 premium

UndervaluedFair: $40.72Overvalued

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

BBY4 strengths · Avg: 9.0/10
Return on EquityProfitability
37.1%10/10

Every $100 of equity generates 37 in profit

Altman Z-ScoreHealth
3.6410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
16.0x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
37.9%8/10

Earnings expanding 37.9% YoY

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%

BBY4 concerns · Avg: 3.5/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.9%4/10

1.9% revenue growth

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

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, Altman Z-Score, P/E Ratio.

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 2.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

BBWI carries more volatility with a beta of 1.35 — expect wider price swings.

BBY is growing revenue faster at 1.9% — sustainability is the question.

BBY generates stronger free cash flow (215M), providing more financial flexibility.

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

Bottom Line

BBY scores higher overall (60/100 vs 59/100). 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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