Bed Bath & Beyond (NASDAQ: BBBY) and At Home Group (NYSE:HOME) are both home furnishings retailers – nec companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Institutional & Insider Ownership

91.9% of Bed Bath & Beyond shares are owned by institutional investors. Comparatively, 24.7% of At Home Group shares are owned by institutional investors. 5.0% of Bed Bath & Beyond shares are owned by insiders. Comparatively, 7.3% of At Home Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

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

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bed Bath & Beyond $12.22 billion 0.28 $685.10 million $3.89 5.98
At Home Group $765.64 million 2.29 $27.06 million $0.60 48.28

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.

Volatility & Risk

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

Dividends

Bed Bath & Beyond pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. 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 recent ratings and price targets for Bed Bath & Beyond and At Home Group, as provided by MarketBeat.com.

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

Bed Bath & Beyond presently has a consensus price target of $27.80, suggesting a potential upside of 19.52%. At Home Group has a consensus price target of $27.50, suggesting a potential downside of 5.07%. Given Bed Bath & Beyond’s higher possible upside, research analysts clearly 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.

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.

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.

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