Bath & Body Works (NYSE:BBWI) vs. Calloway’s Nursery (OTCMKTS:CLWY) Financial Analysis

Calloway’s Nursery (OTCMKTS:CLWY) and Bath & Body Works (NYSE:BBWI) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Calloway’s Nursery	N/A	N/A	N/A
Bath & Body Works	11.10%	-47.44%	15.18%

Earnings and Valuation

This table compares Calloway’s Nursery and Bath & Body Works”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Calloway’s Nursery	$87.25 million	0.16	$5.75 million	N/A	N/A
Bath & Body Works	$7.31 billion	0.90	$798.00 million	$3.75	8.28

Bath & Body Works has higher revenue and earnings than Calloway’s Nursery.

Institutional & Insider Ownership

95.1% of Bath & Body Works shares are owned by institutional investors. 36.4% of Calloway’s Nursery 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, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Calloway’s Nursery has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500. Comparatively, Bath & Body Works has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Calloway’s Nursery and Bath & Body Works, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Calloway’s Nursery	0	0	0	0	0.00
Bath & Body Works	0	4	14	0	2.78

Bath & Body Works has a consensus target price of $42.0625, indicating a potential upside of 35.45%. Given Bath & Body Works’ stronger consensus rating and higher probable upside, analysts clearly believe Bath & Body Works is more favorable than Calloway’s Nursery.

Summary

Bath & Body Works beats Calloway’s Nursery on 10 of the 12 factors compared between the two stocks.

About Calloway’s Nursery

Calloway's Nursery, Inc. operates garden centers in the United States. The company offers birding, fertilizers, garden tools,insect and pest control; mosquito control solutions, pottery, soils and mulches; weed control and fungicide to gardeners. It also provides cornelius home decor and lawn décor products. In addition, the company provides landscape design services. The company operates 24 stores under the Calloway's Nursery name in Texas. Calloway's Nursery, Inc. was founded in 1986 and is based in Fort Worth, Texas.

About Bath & Body Works

Bath & Body Works, Inc. is a specialty retailers and home to America’s Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. The company was founded by Leslie Herbert Wexner in 1963 and is headquartered in Columbus, OH.