Seven and I (OTCMKTS:SVNDY) vs. Build-A-Bear Workshop (NYSE:BBW) Head to Head Comparison

Seven and I (OTCMKTS:SVNDY) and Build-A-Bear Workshop (NYSE:BBW) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Profitability

This table compares Seven and I and Build-A-Bear Workshop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seven and I	2.08%	6.40%	2.30%
Build-A-Bear Workshop	11.34%	41.14%	19.56%

Dividends

Seven and I pays an annual dividend of $0.19 per share and has a dividend yield of 1.5%. Build-A-Bear Workshop pays an annual dividend of $0.88 per share and has a dividend yield of 1.4%. Seven and I pays out 30.2% of its earnings in the form of a dividend. Build-A-Bear Workshop pays out 19.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Build-A-Bear Workshop has increased its dividend for 1 consecutive years.

Risk and Volatility

Seven and I has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Build-A-Bear Workshop has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Seven and I shares are held by institutional investors. Comparatively, 79.3% of Build-A-Bear Workshop shares are held by institutional investors. 5.8% of Build-A-Bear Workshop shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Seven and I and Build-A-Bear Workshop”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seven and I	$78.57 billion	0.41	$1.14 billion	$0.63	19.62
Build-A-Bear Workshop	$496.40 million	1.62	$51.78 million	$4.46	13.75

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

Analyst Ratings

This is a summary of recent recommendations for Seven and I and Build-A-Bear Workshop, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seven and I	0	1	0	0	2.00
Build-A-Bear Workshop	0	1	4	0	2.80

Build-A-Bear Workshop has a consensus price target of $68.00, indicating a potential upside of 10.87%. Given Build-A-Bear Workshop’s stronger consensus rating and higher possible upside, analysts clearly believe Build-A-Bear Workshop is more favorable than Seven and I.

Summary

Build-A-Bear Workshop beats Seven and I on 13 of the 17 factors compared between the two stocks.

About Seven and I

Seven & i Holdings Co., Ltd. operates convenience stores, superstores, department stores, supermarkets, and specialty stores. It operates through six segments: Domestic Convenience Store operations, Overseas Convenience Store Operations, Superstore Operations, Department and Specialty Store Operations, Financial Services, and Others. The company engages in the operation of convenience stores comprising directly managed corporate stores and franchised stores; retail business that provides daily life necessities, such as food and other daily necessities and dollar merchandise and services; banking, leasing, and credit card business; and real estate business. Seven & i Holdings Co., Ltd. was incorporated in 2005 and is headquartered in Tokyo, Japan.

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.