WallStSmart

Bath & Body Works Inc. (BBWI)vsWilliams-Sonoma Inc (WSM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Williams-Sonoma Inc generates 11% more annual revenue ($8.01B vs $7.21B). WSM leads profitability with a 14.7% profit margin vs 10.8%. BBWI appears more attractively valued with a PEG of 0.78. WSM earns a higher WallStSmart Score of 64/100 (C+).

BBWI

Buy

57

out of 100

Grade: C

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

WSM

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 4.3Quality: 6.0
Piotroski: 2/9Altman Z: 3.26
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

Intrinsic value data unavailable for WSM.

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

WSM3 strengths · Avg: 9.3/10
Return on EquityProfitability
55.1%10/10

Every $100 of equity generates 55 in profit

Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

EPS GrowthGrowth
42.0%8/10

Earnings expanding 42.0% 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
-2.3%2/10

Revenue declined 2.3%

WSM3 concerns · Avg: 3.0/10
Price/BookValuation
14.1x4/10

Trading at 14.1x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.582/10

Expensive relative to growth rate

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 : WSM

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

Bear Case : BBWI

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

Bear Case : WSM

The primary concerns for WSM are Price/Book, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

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

WSM carries more volatility with a beta of 1.46 — expect wider price swings.

WSM is growing revenue faster at 6.7% — sustainability is the question.

WSM generates stronger free cash flow (481M), providing more financial flexibility.

Bottom Line

WSM scores higher overall (64/100 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.

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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