At Home Group (NYSE: HOME) and Bed Bath & Beyond (NASDAQ:BBBY) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Insider and Institutional Ownership

24.8% of At Home Group shares are owned by institutional investors. Comparatively, 91.6% of Bed Bath & Beyond shares are owned by institutional investors. 7.3% of At Home Group shares are owned by company insiders. Comparatively, 5.0% of Bed Bath & Beyond shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares At Home Group and Bed Bath & Beyond’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
At Home Group $765.64 million 2.08 $27.06 million $0.60 43.90
Bed Bath & Beyond $12.22 billion 0.28 $685.10 million $3.89 6.06

Bed Bath & Beyond has higher revenue and earnings than At Home Group. Bed Bath & Beyond is trading at a lower price-to-earnings ratio than At Home Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

At Home Group has a beta of 3.84, suggesting that its stock price is 284% more volatile than the S&P 500. Comparatively, Bed Bath & Beyond has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares At Home Group and Bed Bath & Beyond’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
At Home Group 4.18% 7.53% 3.21%
Bed Bath & Beyond 4.64% 21.74% 8.41%

Dividends

Bed Bath & Beyond pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. At Home Group does not pay a dividend. Bed Bath & Beyond pays out 15.4% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for At Home Group and Bed Bath & Beyond, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
At Home Group 0 2 5 0 2.71
Bed Bath & Beyond 7 13 1 0 1.71

At Home Group currently has a consensus price target of $27.50, indicating a potential upside of 4.40%. Bed Bath & Beyond has a consensus price target of $27.80, indicating a potential upside of 17.95%. Given Bed Bath & Beyond’s higher possible upside, analysts plainly believe Bed Bath & Beyond is more favorable than At Home Group.

Summary

Bed Bath & Beyond beats At Home Group on 9 of the 16 factors compared between the two stocks.

At Home Group Company Profile

At Home Group, Inc. is a home decor superstore. The Company is focused on providing a range of assortment of products for any room, in any style, for any budget. As of July 30, 2016, the Company offered over 50,000 stock keeping units (SKUs) throughout its stores. As of July 30, 2016, the Company’s store base is consisted of 115 format stores across 29 states and 65 markets, averaging approximately 120,000 square feet per store.

Bed Bath & Beyond Company Profile

Bed Bath & Beyond Inc. is a retailer, which operates under the names Bed Bath & Beyond (BBB), Christmas Tree Shops, Christmas Tree Shops andThat! or andThat! (collectively, CTS), Harmon or Harmon Face Values (collectively, Harmon), buybuy BABY (Baby) and World Market, Cost Plus World Market or Cost Plus (collectively, Cost Plus World Market). The Company operates in two segments: North American Retail and Institutional Sales. The Company sells a range of domestics merchandise and home furnishings. Domestics merchandise includes categories, such as bed linens and related items, bath items and kitchen textiles. Home furnishings include categories, such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables and juvenile products. The Company operates approximately 1,530 stores plus its various Websites, other interactive platforms and distribution facilities.

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