Bath & Body Works (NYSE:BBWI) and Kirkland’s (NASDAQ:KIRK) Financial Survey

Kirkland’s (NASDAQ:KIRK) and Bath & Body Works (NYSE:BBWI) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Valuation & Earnings

This table compares Kirkland’s and Bath & Body Works”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kirkland’s	$458.41 million	0.05	-$27.75 million	($1.60)	-1.03
Bath & Body Works	$7.43 billion	1.10	$878.00 million	$4.10	9.25

Bath & Body Works has higher revenue and earnings than Kirkland’s. Kirkland’s is trading at a lower price-to-earnings ratio than Bath & Body Works, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Kirkland’s has a beta of 2.42, meaning that its share price is 142% more volatile than the S&P 500. Comparatively, Bath & Body Works has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500.

Institutional and Insider Ownership

15.4% of Kirkland’s shares are owned by institutional investors. Comparatively, 95.1% of Bath & Body Works shares are owned by institutional investors. 5.0% of Kirkland’s shares are owned by insiders. Comparatively, 0.3% of Bath & Body Works shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Kirkland’s and Bath & Body Works, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kirkland’s	0	1	1	0	2.50
Bath & Body Works	1	6	9	0	2.50

Kirkland’s currently has a consensus target price of $4.50, indicating a potential upside of 172.73%. Bath & Body Works has a consensus target price of $42.50, indicating a potential upside of 12.11%. Given Kirkland’s’ higher possible upside, equities research analysts plainly believe Kirkland’s is more favorable than Bath & Body Works.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kirkland’s	-4.56%	N/A	-6.56%
Bath & Body Works	12.43%	-44.03%	14.45%

Summary

Bath & Body Works beats Kirkland’s on 9 of the 13 factors compared between the two stocks.

About Kirkland’s

Kirkland’s, Inc. operates as a specialty retailer of home décor and furnishings in the United States. Its stores provide various merchandise, including holiday décor, furniture, textiles, ornamental wall décor, decorative accessories, art, mirrors, home fragrance, lighting, floral, housewares, outdoor, and gifts. The company operates its stores under the Kirkland’s, Kirkland’s Home, Kirkland’s Home Outlet, Kirkland’s Outlet, and Kirkland Collection names. It also operates an e-commerce website, kirklands.com. The company was founded in 1966 and is headquartered in Brentwood, Tennessee.

About Bath & Body Works

Bath & Body Works, Inc. operates a specialty retailer of home fragrance, body care, and soaps and sanitizer products. It sells its products under the Bath & Body Works, White Barn, and other brand names through retail stores and e-commerce sites located in the United States and Canada, as well as through international stores operated by partners under franchise, license, and wholesale arrangements. The company was formerly known as L Brands, Inc. and changed its name to Bath & Body Works, Inc. in August 2021. Bath & Body Works, Inc. was founded in 1963 and is headquartered in Columbus, Ohio.