Bath & Body Works Inc. (BBWI)vsWilliams-Sonoma Inc (WSM)
BBWI
Bath & Body Works Inc.
$18.19
+0.72%
CONSUMER CYCLICAL · Cap: $3.70B
WSM
Williams-Sonoma Inc
$181.93
+0.46%
CONSUMER CYCLICAL · Cap: $21.51B
Smart Verdict
WallStSmart Research — data-driven comparison
Williams-Sonoma Inc generates 7% more annual revenue ($7.81B vs $7.29B). WSM leads profitability with a 13.9% profit margin vs 8.9%. BBWI appears more attractively valued with a PEG of 0.78. WSM earns a higher WallStSmart Score of 52/100 (C-).
BBWI
Buy51
out of 100
Grade: C-
WSM
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-6.0%
Fair Value
$21.15
Current Price
$18.19
$2.96 premium
Margin of Safety
-254.6%
Fair Value
$60.11
Current Price
$181.93
$121.82 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Growing faster than its price suggests
Strong operational efficiency at 22.5%
Every $100 of equity generates 52 in profit
Safe zone — low bankruptcy risk
Strong operational efficiency at 20.3%
Areas to Watch
Grey zone — moderate risk
ROE of 0.0% — below average capital efficiency
Revenue declined 2.3%
Earnings declined 4.7%
Expensive relative to growth rate
Trading at 10.4x book value
Weak financial health signals
Revenue declined 4.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : BBWI
The strongest argument for BBWI centers on P/E Ratio, PEG Ratio, Operating Margin. PEG of 0.78 suggests the stock is reasonably priced for its growth.
Bull Case : WSM
The strongest argument for WSM centers on Return on Equity, Altman Z-Score, Operating Margin.
Bear Case : BBWI
The primary concerns for BBWI are Altman Z-Score, Return on Equity, Revenue Growth.
Bear Case : WSM
The primary concerns for WSM are PEG Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
BBWI profiles as a value stock while WSM is a declining play — different risk/reward profiles.
WSM carries more volatility with a beta of 1.56 — expect wider price swings.
BBWI is growing revenue faster at -2.3% — sustainability is the question.
BBWI generates stronger free cash flow (814M), providing more financial flexibility.
Bottom Line
WSM scores higher overall (52/100 vs 51/100). 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 recognized for its extensive range of high-quality personal care products, including body care, skincare, fragrances, and home fragrances. With a robust omnichannel presence, the company effectively marries a strong physical retail footprint with a dynamic online platform, fostering exceptional customer loyalty and engagement. Bath & Body Works continues to drive innovation and adapt to shifting consumer preferences through targeted seasonal marketing efforts, enhancing its competitive position in the rapidly evolving beauty and personal care industry. As a subsidiary of L Brands, Inc., it benefits from synergies and shared resources while underscoring its commitment to sustainability and community involvement, positioning it strategically for future growth and market leadership.
Williams-Sonoma Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Williams-Sonoma, Inc. is an omnichannel specialty retailer of various home products. The company is headquartered in San Francisco, California.
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