Petco Health and Wellness (NASDAQ:WOOF) and Build-A-Bear Workshop (NYSE:BBW) Head-To-Head Contrast

Petco Health and Wellness (NASDAQ:WOOF) and Build-A-Bear Workshop (NYSE:BBW) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares Petco Health and Wellness and Build-A-Bear Workshop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Petco Health and Wellness	-0.47%	-1.72%	-0.37%
Build-A-Bear Workshop	11.34%	42.37%	19.95%

Risk & Volatility

Petco Health and Wellness has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Build-A-Bear Workshop has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Petco Health and Wellness and Build-A-Bear Workshop, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petco Health and Wellness	0	6	3	0	2.33
Build-A-Bear Workshop	0	0	3	0	3.00

Petco Health and Wellness currently has a consensus price target of $3.95, indicating a potential downside of 0.92%. Build-A-Bear Workshop has a consensus price target of $68.00, indicating a potential upside of 12.32%. Given Build-A-Bear Workshop’s stronger consensus rating and higher possible upside, analysts plainly believe Build-A-Bear Workshop is more favorable than Petco Health and Wellness.

Institutional & Insider Ownership

79.3% of Build-A-Bear Workshop shares are held by institutional investors. 4.4% of Petco Health and Wellness shares are held by insiders. Comparatively, 5.8% of Build-A-Bear Workshop shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Petco Health and Wellness and Build-A-Bear Workshop”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petco Health and Wellness	$6.12 billion	0.21	-$101.82 million	($0.10)	-39.90
Build-A-Bear Workshop	$496.40 million	1.61	$51.78 million	$4.46	13.57

Build-A-Bear Workshop has lower revenue, but higher earnings than Petco Health and Wellness. Petco Health and Wellness is trading at a lower price-to-earnings ratio than Build-A-Bear Workshop, indicating that it is currently the more affordable of the two stocks.

Summary

Build-A-Bear Workshop beats Petco Health and Wellness on 11 of the 13 factors compared between the two stocks.

About Petco Health and Wellness

Petco Health and Wellness Company, Inc., operates as a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites. The company offers its products under the WholeHearted, Reddy, and Well & Good brands. Petco Health and Wellness Company, Inc. was founded in 1965 and is headquartered in San Diego, California.

About Build-A-Bear Workshop

Build-A-Bear Workshop, Inc. operates as a multi-channel retailer of plush animals and related products in the United States, Canada, the United Kingdom, Ireland, and internationally. The company operates through three segments: Direct-to-Consumer, Commercial, and International Franchising. Its merchandise comprises various styles of plush products to be stuffed, pre-stuffed plush products, and sounds and scents that can be added to the stuffed animals, as well as range of clothing, shoes and accessories, and other toy and novelty items, including family sleepwear. The company operates its stores under the Build-A-Bear Workshop brand name; and sells its products through its e-commerce sites and third-party marketplace sites. Build-A-Bear Workshop, Inc. was founded in 1997 and is headquartered in Saint Louis, Missouri.