Comparing Kingfisher (OTCMKTS:KGFHY) and Bath & Body Works (NYSE:BBWI)

Kingfisher (OTCMKTS:KGFHY) and Bath & Body Works (NYSE:BBWI) are both mid-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Institutional and Insider Ownership

0.0% of Kingfisher shares are held by institutional investors. Comparatively, 95.1% of Bath & Body Works shares are held by institutional investors. 0.3% of Bath & Body Works shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Kingfisher pays an annual dividend of $0.43 per share and has a dividend yield of 5.7%. Bath & Body Works pays an annual dividend of $0.80 per share and has a dividend yield of 2.5%. Bath & Body Works pays out 21.3% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Kingfisher and Bath & Body Works”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingfisher	$16.34 billion	0.41	$235.86 million	N/A	N/A
Bath & Body Works	$7.31 billion	0.92	$798.00 million	$3.75	8.48

Bath & Body Works has lower revenue, but higher earnings than Kingfisher.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Kingfisher and Bath & Body Works, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingfisher	2	2	1	0	1.80
Bath & Body Works	0	4	14	0	2.78

Bath & Body Works has a consensus target price of $42.00, indicating a potential upside of 32.12%. Given Bath & Body Works’ stronger consensus rating and higher possible upside, analysts plainly believe Bath & Body Works is more favorable than Kingfisher.

Profitability

This table compares Kingfisher and Bath & Body Works’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kingfisher	N/A	N/A	N/A
Bath & Body Works	11.10%	-47.44%	15.18%

Volatility & Risk

Kingfisher has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Bath & Body Works has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500.

Summary

Bath & Body Works beats Kingfisher on 10 of the 14 factors compared between the two stocks.

About Kingfisher

Kingfisher plc, together with its subsidiaries, supplies home improvement products and services primarily in the United Kingdom, Ireland, France, and internationally. It also operates retail stores under the B&Q, Castorama, Brico Dépôt, Screwfix, TradePoint, and Koçtas brands. The company sells its products through stores and e-commerce channels. Kingfisher plc was incorporated in 1982 and is headquartered in London, the United Kingdom.

About Bath & Body Works

Bath & Body Works, Inc. is a specialty retailers and home to America’s Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. The company was founded by Leslie Herbert Wexner in 1963 and is headquartered in Columbus, OH.