Bath & Body Works Inc. (BBWI)vsThe Home Depot Inc (HD)
BBWI
Bath & Body Works Inc.
$21.06
+0.43%
CONSUMER CYCLICAL · Cap: $4.06B
HD
The Home Depot Inc
$348.34
+2.42%
CONSUMER CYCLICAL · Cap: $337.89B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 2199% more annual revenue ($166.59B vs $7.25B). BBWI leads profitability with a 10.0% profit margin vs 8.4%. BBWI appears more attractively valued with a PEG of 0.78. BBWI earns a higher WallStSmart Score of 59/100 (C).
BBWI
Buy59
out of 100
Grade: C
HD
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+11.6%
Fair Value
$25.35
Current Price
$21.06
$4.29 discount
Margin of Safety
-61.3%
Fair Value
$213.57
Current Price
$348.34
$134.77 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 83.7% YoY
Conservative balance sheet, low leverage
Growing faster than its price suggests
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Safe zone — low bankruptcy risk
Generating 5.2B in free cash flow
Areas to Watch
Grey zone — moderate risk
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Revenue declined 3.2%
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 25.0x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
Bear Case : BBWI
The primary concerns for BBWI are Altman Z-Score, Return on Equity, Piotroski F-Score.
Bear Case : HD
The primary concerns for HD are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 4.18 is elevated, increasing financial risk.
Key Dynamics to Monitor
BBWI carries more volatility with a beta of 1.35 — expect wider price swings.
HD is growing revenue faster at 4.8% — sustainability is the question.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Monitor SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BBWI scores higher overall (59/100 vs 54/100). 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.
The Home Depot Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.
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