Container Store Group (NYSE: TCS) and Bed Bath & Beyond (NASDAQ:BBBY) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.
Risk and Volatility
Container Store Group has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Bed Bath & Beyond has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.
This table compares Container Store Group and Bed Bath & Beyond’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Container Store Group||3.34%||5.91%||1.75%|
|Bed Bath & Beyond||4.11%||19.07%||7.48%|
This is a breakdown of recent ratings and price targets for Container Store Group and Bed Bath & Beyond, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Container Store Group||1||2||0||0||1.67|
|Bed Bath & Beyond||7||12||1||0||1.70|
Container Store Group presently has a consensus target price of $4.83, suggesting a potential downside of 13.54%. Bed Bath & Beyond has a consensus target price of $24.75, suggesting a potential upside of 18.88%. Given Bed Bath & Beyond’s stronger consensus rating and higher probable upside, analysts plainly believe Bed Bath & Beyond is more favorable than Container Store Group.
Institutional & Insider Ownership
78.8% of Container Store Group shares are held by institutional investors. Comparatively, 91.4% of Bed Bath & Beyond shares are held by institutional investors. 65.7% of Container Store Group shares are held by company insiders. Comparatively, 5.0% of Bed Bath & Beyond shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Container Store Group and Bed Bath & Beyond’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Container Store Group||$819.93 million||0.33||$14.95 million||$0.26||21.50|
|Bed Bath & Beyond||$12.22 billion||0.24||$685.10 million||$4.58||4.55|
Bed Bath & Beyond has higher revenue and earnings than Container Store Group. Bed Bath & Beyond is trading at a lower price-to-earnings ratio than Container Store Group, indicating that it is currently the more affordable of the two stocks.
Bed Bath & Beyond pays an annual dividend of $0.60 per share and has a dividend yield of 2.9%. Container Store Group does not pay a dividend. Bed Bath & Beyond pays out 13.1% of its earnings in the form of a dividend.
Bed Bath & Beyond beats Container Store Group on 11 of the 16 factors compared between the two stocks.
Container Store Group Company Profile
The Container Store Group, Inc. engages in the retailing of storage and organization products and solutions in the United States. The company operates through two segments, The Container Store and Elfa. Its retail stores provide various lifestyle products, including bath, box, closets, collections, containers, gift packaging, hooks, kitchen, laundry, office, shelving, storage, trash, and travel, as well as elfa branded products. The company also designs, manufactures, and sells component-based shelving and drawer systems that are customizable for any area of the home, such as closets, kitchens, offices, and garages, as well as made-to-measure sliding doors. As of April 1 2017, it operated 86 stores. The company also offers its products directly to customers through its Website and call center, as well as sells to various retailers and distributors, and on a wholesale basis. The Container Store Group, Inc. was founded in 1978 and is headquartered in Coppell, Texas.
Bed Bath & Beyond Company Profile
Bed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores. It sells a range of domestics merchandise, including bed linens and related items, bath items, and kitchen textiles; and home furnishings, such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables, and juvenile products. It also provides various textile products, amenities, and other goods to institutional customers in the hospitality, cruise line, healthcare, and other industries. As of December 20, 2017, the company had a total of 1,558 stores, includes 1,020 Bed Bath & Beyond stores in 50 states, the District of Columbia, Puerto Rico, and Canada; 280 stores under the names of World Market, Cost Plus World Market, or Cost Plus; 118 buybuy BABY stores; 83 stores under the Christmas Tree Shops, Christmas Tree Shops andThat! or andThat! names; and 57 stores under the Harmon, Harmon Face Values, or Face Values. It also offers products through various Websites and applications, such as bedbathandbeyond.com, bedbathandbeyond.ca, harmondiscount.com, christmastreeshops.com, buybuybaby.com, buybuybaby.ca, harborlinen.com, t-ygroup.com, and worldmarket.com. In addition, the Company operates Of a Kind, an e-commerce Website that features specially commissioned limited edition items from emerging fashion and home designers; One Kings Lane, an online authority in home décor and design that offers a collection of selected home goods, and designer and vintage items; PersonalizationMall.com, an online retailer of personalized products; Chef Central, an online retailer of kitchenware, cookware, and homeware items catering to cooking and baking enthusiasts; and Decorist, an online interior design platform that provides personalized home design services. Bed Bath & Beyond Inc. was founded in 1971 and is based in Union, New Jersey.
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